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1467 Rand Water 2010 Sustainability Report CS4 Pr10 - About Rand Water

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									About Rand Water
For 106 years, Rand Water has supplied bulk potable            three pumping stations. The flow of the water in the
water to Gauteng and its surrounding areas.                    Orange River is diverted through a series of tunnels
                                                               through the Maluti Mountains, into the Eastern Free State,
Rand Water’s success is based on sharing in the                and from thereon into the Vaal Dam.
pioneering spirit that led to the growth of the city of
Johannesburg. It is the same spirit that has driven Rand       Rand Water extracts water from the Vaal Dam and
Water’s growth in terms of infrastructure and quality.         purifies and disinfects the water at its Vereeniging and
Rand Water has an internationally renowned reputation          Zuikerbosch Purification and Pumping Stations. The
for supplying water of a quality that ranks among the          water is then pumped to Zwartkopjes (Rand Water’s
best in the world.                                             main booster pumping station) and three satellite booster
                                                               pumping stations situated at Palmietfontein, Eikenhof and
However, by the early 1970s, Rand Water’s primary              Mapleton. From here, the water is then pumped again to
source of water, the Vaal River, had its potential exploited   the 58 reservoirs located through Rand Water’s area of
to the utmost; the problems of future water supply for         supply. It is from these reservoirs that water is delivered to
industry, commerce and domestic use in the Gauteng             Rand Water’s customers.
area were becoming increasingly serious. The solution
was to transfer water from the catchment area of the           Rand Water is the largest water utility in Africa, providing
Tugela River to that of the Vaal.                              bulk potable water to a population that has grown
                                                               to an estimated 11 191 700 in Gauteng, parts of
Since the water transfer over the Drakensberg required         Mpumalanga, the Free State and North West provinces.
the construction of reservoirs, channels and pumps,            Its customer base includes metropolitan municipalities,
it opened the way to build a hydroelectric power               local municipalities, mines and industries.
station which could further exploit the potential of water
resources being made available.                                Through the establishment of Rand Water Services (Pty)
                                                               Ltd, Rand Water is positioning itself among the leaders
In 1982 the project was completed, operating as a              in the industry in Africa and beyond. Rand Water
pumped storage scheme and as a pumping station for             has continued to be trusted by various government
water transfer over the Drakensberg from the Tugela to         departments, including the DWEA, as an implementing
the Vaal.                                                      agent in various community projects aimed at improving
                                                               the lives of people.
In February 1998, the Lesotho Highlands Water Project
(LHWP) began transferring water into the Vaal Dam.
The LHWP in its present form comprises six dams and                         www.randwater.co.za

                                                                 1                       Rand Water Sustainability Report 2009–2010
About this Report
            We present to the stakeholders the Rand Water 2010
            Sustainability Report. Our sustainability reporting seeks to
            provide a balanced, transparent and objective view of
            the sustainability issues that are relevant and material to
            Rand Water. This report sets out abstracts of the financial
            information reported as at 30 June 2010 as well as non-
            financial information as approved by the board of Rand
            Water on 7 October 2010.


            In addition to this report, stakeholders are advised to
            read the following:


            •   Rand Water Annual Report 2009/2010


            •	 Blue Drop 2010 Report




Rand Water Sustainability Report 2009–2010                           2
Key Achievements
•   Maintenance of our Blue Drop Certification


•   Assisted six municipalities within our service area of supply to obtain Blue Drop status


•   Awarded the International Water Association Award


•   Development of targeted training programmes for Rand Water staff and community members


•   Achieved Preferential Spend of 81.12-percent against a target spend of 75-percent


•   Re-certification of Occupational Health, Safety, Environmental Management and Quality Management Systems


•   Improvement of Customer Perception Indicators




Disappointments and Challenges
•   Improvements required on performance of Environmental Impact Assessments and the issue of Water Use Licences


•   Increasing pressure on infrastructure


•   Continued contamination of water sources


•   Shortage of appropriate skills to carry out research projects




                                                                      3                        Rand Water Sustainability Report 2009–2010
Strategic Framework
            Vision
            To be a provider of sustainable, universally competitive water and sanitation solutions for Africa.


            Mission
            To consistently meet the expectations of our customers, partners and the government by strengthening our capability to:
            •	 attract, develop and retain leading edge skills in water services;
            •	 sustain a robust financial performance;
            •	 develop and sustain globally competitive capabilities in core areas;
            •	 enter into and sustain productive partnerships; and
            •	 develop, test and deploy cost-effective technologies.

            Strategic Objectives
            •	 Achieve growth;
            •	 Achieve a high-performance culture;
            •	 Positively engage stakeholder base;
            •	 Maintain financial health and sustainability; and
            •	 Achieve operational integrity and use best fit technology.

            Primary Activities and Key Competencies
            •   Bulk potable water supply                   •   Sanitation and waste water management
            •   Bulk sanitation services                    •   Project and quality management
            •   Products and other services                 •   Commissioning of water and waste-water treatment plants
            •   Operating and maintenance expertise         •   Training, education and communication programmes
            •   Engineering planning and designs            •   Infrastructure refurbishment
            •   Catchment management services               •   Water demand management
            •   Scientific and analytical services          •   Retail water services
            •   Utility management                          •   Water cycle management services




Rand Water Sustainability Report 2009–2010                         4
Statement from the Acting Chairperson
and the Chief Executive




     Adv Mosotho Petlane – Acting Chairperson                          Mr Percy Sechemane – Chief Executive


Our annual report is an important element of our strategy      clearly visible. The period that is covered by this report is
execution system. It is a statutory requirement in terms of    from 1 July 2009 to 30 June 2010.
the Water Services Act No. 108 of 1997 and the Public
Finance Management Act No. 1 of 1999 that disclosure           As Rand Water, we entered into a compact with our
be made of annual performance against the business             Shareholder in which compact is a clear policy directive
plan. We have also taken the opportunity to align this         that the Organisation should focus its resources in support
statutory reporting obligation with best sustainability        of the Government’s priorities. The priorities mentioned
reporting practice.                                            include, amongst others, a reduction in poverty that will
                                                               be achieved in part through meeting the Millennium
While we have produced annual reports that cover our           Development Goals. The continued existence and
financial and operational performance since inception,         development of the Organisation and our ability to
and we have undertaken activities to ensure our future         deliver on our compact depend to a large extent on the
sustainability for many years now, no formal reporting         development of forward looking strategies that not only
on sustainability matters has hitherto been undertaken. It     focus on the bottom line but take into account the impact
therefore gives us much pleasure to present our first ever     that the Organisation has on our Earth and its people.
Sustainability Report. The Report sets out the strides that    The scarcity of water, enterprise development, climate
we have been able to achieve over the many years of            change, the potential impact of contamination of water
existence of Rand Water as well as the milestones we           sources, the shortage of skills and the development of our
intend to attain in order to ensure a sustainable future for   community are all but a few of the challenges that the we
all our stakeholders.                                          must surmount going into the future and to this end, efforts
                                                               are being directed in order to ensure that adequate steps
With effect from the year under review and in keeping          are taken and taken timeously. It goes without saying that
with the recommendations of the King III Code, we are          the issues mentioned herein all form the underpinnings of
embarking on a process of ensuring that a formalised           a successful strategy on Sustainable Development.
sustainability strategy is implemented and pursued.
The implementation of the strategy will ensure the             The financial performance of the Organisation over the
measurement of performance of the Organisation against         years has been nothing short of commendable. In the
predetermined objectives and that the impact of the            year under review, the Organisation posted revenues of
strategy and operations of the Organisation will be more       R5 billion with profit of R302 million. While profitability is



                                                                  5                       Rand Water Sustainability Report 2009–2010
Statement from the Acting Chairperson and the Chief Executive (continued)


            down on the amounts achieved in the previous financial          educational institutions that assist us with research and
            year due to cost pressures on the Organisation, we have         training projects which enable us to work smarter and
            taken and continue to take steps to address this and            develop more efficient and sustainable processes –
            ensure profitable operations into the future.                   whether this be in respect of water purification methods,
                                                                            water conservation methods or the litany of other areas
            Amongst the measures that we have instituted in order to        in which they assist.
            facilitate profitability are assessments of the adequacy
            of our infrastructure. We continue to invest in the             We have, in the current year, benchmarked our reporting
            maintenance and establishment of pipelines and pump-            on sustainability matters against the Global Reporting
            stations that will ensure our ability to deliver product to     Initiative’s G3 Sustainability Reporting Guidelines. The
            Gauteng and its environs. In the new financial year,            accompanying report covers all the divisions and entities
            it is our intention to secure funding that will enable us       under the Rand Water umbrella and we have prepared
            to finance projects that will augment the infrastructure        it based on the Guidelines at a C level. It is our intention
            and to this end, our continued stellar performance will         to improve on this going forward, while at the same
            stand us in very good stead with potential financiers. To       time, working towards the issuance of an Integrated
            complement our efforts on the distribution infrastructure,      Sustainability Report as espoused by the King III Code.
            we will continue to engage with the Department of               It is our intention to continue reporting on sustainability
            Water and Environmental Affairs on the development of           matters on an annual basis and, going forward, we will
            alternative and environmentally sustainable sources of          endeavour to ensure that the information contained herein
            water in the area, while at the same time assisting, as         is externally assured.
            best as we can, with dealing with the problems of water
            contamination.                                                  Our thanks go to all the Staff, Management, members
                                                                            of the Portfolio Integrating Committee, members of the
            None of the work that we do would be possible without           Board of Directors and our Shareholder for their unstinting
            the dedication and skill of our people and their ability        support in achieving the milestones that we have and for
            to impart their skills on the next generation of Rand           their continued support into the future. Most of all, we
            Water staff. To this end, we continue to invest substantial     would like to thank, on behalf of Rand Water, the Nation
            amounts of resources into the education of the future           of South Africa and in particular, the people of Gauteng
            leaders of our Organisation and our Country, the training       and its environs who have assisted us to deliver on our
            of our current staff complement and the community               mandate and continue to do so ever so diligently.
            at large. We are also grateful to the various tertiary




            Adv M PETLANE                                                   DKP SECHEMANE
            ACTING CHAIRPERSON                                              CHIEF EXECUTIVE




Rand Water Sustainability Report 2009–2010                              6
Stakeholder Engagement
Rand Water undertook a process of identifying its              harmoniously. As an organisation, Rand Water continues
stakeholders and understanding how they are impacted           to be proactive in dealing with community concerns
by its operations and how it can strive to achieve a better    and interests and continue to undertake corporate social
future for all.                                                investment initiatives in the various communities in which it
                                                               operates with the aim that it develops a sustainable future
Our Shareholder and financiers                                 for all concerned.

Rand Water engages with its Shareholder and other
                                                               Customers
financiers through various platforms, the publication of its
annual results and other financial information being one       Rand Water continues to conduct surveys of its Customer
of various methods that are used in order to communicate       base in order to understand their requirements and to
with them. Meetings are held on a regular basis with the       ensure that it continues to meet our objective of satisfying
Department of Water Affairs and Environment and the            their needs. In addition, various forums have been set
results of such engagements with them in turn guide the        up which also provide Rand Water with an opportunity
overall strategy of the Organisation.                          to engage directly with the customers, ensuring that
                                                               concerns are addressed in a timely manner.
Local communities and civil society
                                                               Contractors and service providers
Several initiatives have been set up that enable
Rand Water to have access to the communities that              The quality of products and services provided by
are affected by its operations, whether they are the           contractors and service providers has a significant impact
consumers of its product or they dwell in its catchment        on the continued service that it is able to provide to its
and service areas. Several initiatives are undertaken          customer base. To this end, Rand Water continues to
each year in order to educate the communities on water         engage with its suppliers in order to ensure that such
conservation initiatives and to listen to ideas that they      quality is maintained. Rand Water is also very mindful
may have on how the Organisation’s operations may              of the imbalances that the past dispensation in South
impact their livelihoods and how all affected can co-exist     Africa created and to this end, it is committed to the




                                                                 7                        Rand Water Sustainability Report 2009–2010
Stakeholder Engagement (continued)


            development of Small, Medium and Micro Enterprises.             This relationship is evident in the more than 500 news
            Rand Water has put in place projects to support such            articles that were generated during the year, of which
            entities and to ensure that they are able to establish a        122 were published by media organisations based
            business model that will be sustainable long into the           internationally, in such countries as the United States,
            future through the offering of training and other relevant      Ghana and the United Kingdom.
            support mechanisms.
                                                                            Staff
            Educational Institutions
                                                                            Rand Water’s staff are amongst its most prized
            Rand Water continues to support various tertiary                stakeholders and it continues to engage with them on
            institutions as they are an important supplier of the           various platforms in order to ensure that they are aware
            specialist skills that it requires. It also collaborates with   of the issues that confront the Organisation and that a
            tertiary institutions on research projects and they have        common approach to solutions is achieved. It is Rand
            contributed immensely to new water conservation and             Water’s intention to increase their participation in the
            purification methodologies. Rand Water continues to             process of identifying the means by which sustainable
            engage with schools and has taken its Water Wise                development of the Organisation can be achieved
            initiative to various schools in its area of operation.         and to this end, it is planning to carry out sustainability
            Schools provide the Organisation with a wide captive            awareness workshops and surveys from which it will
            audience for its water conservation message and the             be able to gather information and ideas on the efforts
            results that are starting to be borne are indicative of a       embarked upon thus far.
            change in the mind-set of the younger generation with
            respect to the use and conservation of water resources.         Organised Labour

                                                                            From time to time the Executive Management consults
            The Media
                                                                            with Organised Labour on matters of mutual interest and
            Rand Water maintained a very good working                       out of these forums, suggestions on matters that feed into
            relationship with local and international media houses.         the overall strategy of the Organisation are made.




Rand Water Sustainability Report 2009–2010                              8
Enterprise-Wide Risk Management Framework
Rand Water has an Enterprise-Wide Risk Management                During the June 2010 annual risk assessment,
Framework which has three components namely:                     37 strategic risks were identified and ranked on the
•   Risk Policy statement;                                       Risk Register. The Risk Register was discussed by
•   Risk Management Framework; and                               Corporate Risk Committee, Portfolio Integrating
•   Methodology                                                  Committee (PIC) and recommended to the Board for
                                                                 adoption in September 2010 and were also assigned
This framework is currently under review taking into             to responsible PIC members.
account the requirements set out in the King III Code and
ISO 31000.                                                       The risk mitigation plans and controls are continuously
                                                                 monitored by Rand Water’s Corporate Risk Committee
Rand Water is committed to mitigate and manage all its           (CRC) and these are then assessed by the internal audit
identified risks. Risk identification is done through the risk   function before being considered by the Board Risk
assessment process. The risks are identified, analysed,          Committee.
evaluated and ranked by order of priority and risk
owners are appointed. The operational risk assessment            Occupational Health, Safety, Environmental and
is done by Portfolios, divisions and sites and the Overall       Quality Management Systems (SHEQ)
Strategic Risk Assessment is conducted once a year
                                                                 Continual maintenance of SHEQ Management Systems
with all Portfolios being present. Internal Audit provide
                                                                 during the year under review through the ISO standards
assurance on effectiveness of mitigating controls and
                                                                 namely, ISO 14001 (Environmental Management
report on this to the Board and its Risk Committees.
                                                                 Systems), ISO 9001 (Quality Management System)
                                                                 and OHSAS 18001 (Occupational Health & Safety
All governance structures taking part in management,
                                                                 Management System) have benefited Rand Water with
monitoring or playing oversight role in this function are
                                                                 regards to the compliance to legislation most notably
stipulated in the Entity-Wide Risk Management (EWRM)
                                                                 the environmental legislation, reduction of ill-health and
Framework.
                                                                 workplace injuries.




Table 1: The following are the Rand Water Top Eleven Strategic Risks:


 2010 Top Eleven Risks                                            2009 Top Thirteen Risks
 Condition of existing infrastructure and future expansion        Condition of existing infrastructure
 Alternative revenue streams (other than bulk sanitation)         Availability, cost and tenure of funds
 Business efficiency                                              Quality of potable water
 Ability and capability to supply bulk sanitation                 Critical skills attraction and retention
 Critical skills attraction and retention                         Supply of Bulk Sanitation Services
 Contracting                                                      Contractual Obligations
 Sustainability of supply of goods and services                   Business Efficiency
 Availability, cost and tenure of funds                           Alternative Revenue Streams
 Contractual performance                                          Achievement of stakeholder expectations
 Alignment between strategic and operational objectives           Application of Corporate Governance
 Staff Capacity and Capability                                    Quality and Quantity of Raw Water
                                                                  Availability of goods and services
                                                                  Alignment between strategic and operational objectives



                                                                    9                       Rand Water Sustainability Report 2009–2010
Enterprise-Wide Risk Management Framework (continued)


                                                                           A procedure for the management and execution of
                                                                           EIAs was developed by a task team of specialists from
                                                                           Rand Water’s Risk Advisory Services, Strategic Asset
                                                                           Management, Environmental Management Services and
                                                                           Business Process Mapping departments. Workshops on
                                                                           EIAs and Water Use Licenses were also conducted in
                                                                           the organisation, where legislative requirements and best
                                                                           practices were discussed, and implementation guidelines
                                                                           were consequently developed for the organisation.


                                                                           Rand Water also adheres to monitoring of environmental
            In accordance with the Certification Body’s requirements,      aspects that may pose a risk to the environment.
            Rand Water’s SHEQ Management System underwent a                Currently, Rand Water is monitoring dust fall out at some
            re-certification by a third party (SABS) audit and retained    of its sites, as well as waste generation, in particular
            its certifications with distinction. These three yearly        hazardous waste, throughout the organisation.
            re-certification audits have re-affirmed the high maturity
            level of Rand Water’s SHEQ Management Systems and              Occupational Health and Safety – OHSAS
            has enhanced the Combined Assurance by the Board.              18001:2007
            Internal and external surveillance and legal audits are
                                                                           Rand Water has been successfully certified in terms of
            continuously undertaken as per dedicated schedules to
                                                                           the updated version of OHSAS 18001:2007. The
            constantly monitor the effectiveness of the systems, and to
                                                                           updates include, but are not limited to, the requirement
            ensure compliance with all legal and other requirements
                                                                           that the organisation takes human behaviour capabilities
            applicable to the organisation.
                                                                           into account when assessing hazards and risks in the
                                                                           workplace.
            Environmental Management – ISO 14001:2004

            In September 2009, following extensive internal,               Table 2:
            surveillance and legal audits, Rand Water was able to
                                                                                     Year                Actual *DIFR             Target DIFR
            maintain its ISO 14001:2004 certification for a further
                                                                           2003/04                           0,78                     1,00
            three years to September 2012. In so doing, Rand
                                                                           2004/05                           0,64                     1,00
            Water again demonstrated its ability to implement its
                                                                           2005/06                           0,41                     1,00
            commitments to sustainable development and pollution           2006/07                           0,38                      0,8
            prevention, and its adherence to legal requirements.           2007/08                           0,54                      0,8
                                                                           2008/09                         0,57**                      0,8
            In line with the fundamental principle of continual            2009/2010                         0.53                      0.8
            improvement, entrenched in the ISO 14001:2004                  2010/2011                                                0.6***

            standard, Rand Water has also embarked on strategies           *DIFR – disabling injury frequency rates (greater than one shift loss- and
            to improve its environmental monitoring and reporting          calculated per 200 000 man-hours worked)
                                                                           **Human behaviour, and tripping and falling from steps were the main
            as well as its compliance to applicable legislation. After
                                                                           cause of the increase in disabling injury frequency.
            a gap analysis was completed, the key problem areas            *** New target for disabling injury frequency rate

            of Environmental Impact Assessments (EIAs) and Water
                                                                           A reduction in disabling injuries was experienced from
            Use Licenses were identified. Rand Water continues
                                                                           disabling injury frequency rate of 0.57 to 0.53 during
            to engage with the Department of Water Affairs and
                                                                           the year under review.
            Environment to resolve these challenges.




Rand Water Sustainability Report 2009–2010                            10
Table 3: Disabling frequency injury rate per 200 000 man-hours worked



            1                1

                                            0.8               0.8                0.8              0.8

          0.64                                                                                                      0.6
                                                              0.54              0.57
                                                                                                 0.53
                          0.41             0.38




     2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011


                                                      DIFR                  Target


This was mainly due to a number of factors including, but            regards to compliance to the Construction Regulations
not limited to, the following elements of the Occupational           as framed under the Occupational Health and Safety
Health and Safety programme:                                         (OHS Act 85 of 1993). A successful campaign by
                                                                     Rand Water’s Risk Advisory departments to have all
•   Regular workplace Health and Safety inspections by               contractors to comply with the Construction Regulations
    Health and Safety Representatives                                was achieved. This included all small and emerging,
                                                                     medium and big contractors. Compliance to the OHS
•   Health and Safety awareness programmes                           Act 85 of 1993, improved especially amongst the small
                                                                     and emerging contractors. A number of SHE workshops
•   Effective reporting; corrective and preventative system          facilitated by Rand Water’s Risk departments were held to
                                                                     increase SHE awareness among the contractors.
Programmes on SHE awareness including induction and
safety awareness posters will now be intensified.                    Site Business Continuity Plans

                                                                     During the year under review, all Rand Water’s major
Quality Management Systems (QMS)
                                                                     pumping stations’ Business Continuity Plans were
– ISO 9001:2008
                                                                     reviewed. The review process identified no specific
Rand Water holds bi-annual SABS quality management                   areas of serious concern. Nonetheless, all the information
audits which continue to confirm the high maturity                   contained in the Business Continuity Plans were updated,
level of Quality Management Systems. In these SABS                   and are now current.
audits, Rand Water’s QMS was found to continuously
comply with all ISO 9001:2008 requirements. The                      Disaster Simulation Exercises
re-certification process has already commenced, and the
                                                                     A total of eight disaster simulation exercises were conducted
first sets of SABS audits have shown excellent compliance
                                                                     during the year under review in conjunction with the
to the updated ISO 9001:2008.
                                                                     appropriate local authority emergency services, i.e., Disaster
                                                                     Management Centres, the South African Police Services,
Contractor Management
                                                                     Rand Water operational sites and other stakeholders.
During the year under review, all Rand Water sites                   Detailed action plans including timeframes have been
continued focusing on contractor management with                     compiled for all deviations and are being addressed.


                                                                       11                       Rand Water Sustainability Report 2009–2010
Enterprise-Wide Risk Management Framework (continued)


            External Audit                                                 as a detailed audit plan based on risk assessments and
                                                                           issues raised at the Board, the Audit sub-committee and
            External auditors have been appointed to provide
                                                                           Portfolio Integrating Committee (PIC) meetings.
            assurance and credibility to the organisation’s existing
            Assurance Framework in terms of the Public Finance
                                                                           Rand Water’s Internal Audit unit has focused on the
            Management Act (PFMA) and the Water Services Act. In
                                                                           following key issues, which are championed by the
            future years, the sustainability report will also be subject
                                                                           Board and the Portfolio Integrating Committee, which
            to external assurance.
                                                                           insisted on a more tangible demonstration of the
                                                                           performance of Rand Water’s Internal Audit unit:
            Internal Audit

            In recent years, internal audit processes have                 •   Focusing on client management, to include
            internationally undergone significant changes with regard          knowledge sharing and fostering partnerships with
            to how these audits should be undertaken. Most notably,            line managers, and returning the ownership of
            there has been a visible move from process based audits            controls to management.
            to ones that are risk-based, while also embracing the key
            principles of governance and risk management.                  •   Re-directing its processes from detection to
                                                                               prevention; and identifying solutions to challenges.
            Rand Water’s Internal Audit unit is considered critical
            to the Organisation and has an independent appraisal           •   Focusing on a risk-based approach with its audit
            function established to evaluate the adequacy and                  processes.
            effectiveness of its controls, disciplines, systems
            and procedures in order to reduce business risks to            •   Adding value to Rand Water’s organisational
            acceptable and cost effective levels and to ensure the             objectives, strategies, risks and corporate governance
            achievement of the Organisation’s objectives.                      priorities.


            The head of Rand Water’s Internal Audit unit reports           •   Greater emphasis on technology, i.e. automated
            functionally to the Audit Committee and administratively           work papers, computer assisted audit software.
            to the Group Governance Executive attends at meetings
            of the Board’s Audit Committee. He also attends the            •   The adoption of a risk-based plan and the
            meetings of the PIC by invitation. To deliver value added          importance of cooperation with other assurance
            service at Rand Water, the Internal Audit unit has found it        providers.
            imperative to emphasise the importance of differentiators
            rather than focusing exclusively on qualifiers.                Rand Water’s Internal Audit unit has undertaken the
                                                                           following processes amid the evolving enterprise risks
            Qualifiers are the standard audit processes internal audit     and recession to add strategic value to the Organisation:
            must accomplish daily. These include assurance work,
            audit reports, work paper documentation and training           •   Linking the organisation’s strategic objectives and
            and development. Differentiators push the internal audit           value-drivers to those that fall within the scope of
            team to strive for excellence and underscore its ability to        internal audit.
            deliver distinctive value to the organisation.
                                                                           •   Responding to stakeholders’ expectations of
            With this is in mind, it is not surprising that people play        internal audit, and the priorities of the Board, the
            the most critical role in Rand Water’s internal audit              Audit subcommittee and the Portfolio Integrating
            processes. Rand Water has a formal charter in place to             Committee.
            regulate the functions of the Internal Audit unit, as well



Rand Water Sustainability Report 2009–2010                            12
•   Identifying inefficient processes and eliminating          The standardised templates on the Contract Management
    routine low-value audits.                                  System reduce any legal risk that Rand Water could
                                                               potentially face. Since its implementation, Rand Water
•   Regularly reviewing the updated internal audit plan        has observed a significant decrease in the number of
    together with the implementation of cost-reduction         contracts challenged by interested and affected Third
    measures with key stakeholders to further improve          Parties.
    support for internal audit processes.
                                                               Supply Chain Management
•   Maintaining the alignment with the changing risk
                                                               Rand Water considers transformation as an essential
    profile of Rand Water.
                                                               element of its business that is integral to the development
                                                               of South Africa. Rand Water is committed to addressing
•   Attracting and retaining internal audit human resource
                                                               the imbalances of the past, not only with regard to its
    talent and increasing the business and operational
                                                               human resource processes but also in its commercial
    knowledge of staff.
                                                               equity priorities. The organisation’s Preferential
                                                               Procurement Policy is based on the Broad-Based Black
•   Leveraging technology to optimise audit operations.
                                                               Economic Empowerment Act and the Department of
                                                               Trade and Industry’s (DTI) Codes of Good Practice.
Legal Services

Rand Water’s strategic risk analysis for the year under        The policy is aimed at the inclusion of previously
review identified “Contractual Performance” as the sixth       disadvantaged individuals onto the supplier base for
most strategic risk of the organisation. Rand Water            goods and services. The policy also allows for the setting
has implemented a Contract Management System to                and reviewing of targets to ensure that progress is made
streamline previously fragmented contract management           towards the achievement of the organisation’s objectives.
processes. Essentially, the Contract Management
System allows for the provision of contract governance,        Rand Water’s Procurement Policy strives to:
execution management, and performance monitoring
while at the same time improving efficiencies.                 •    Provide an appropriate acquisition process for the
                                                                    procurement of all goods and services.
The System also allows for:
                                                               •    Ensure that the procurement process is fair,
•   The central storage of contracts and a controlled user          transparent, consistent, equitable, competitive and
    access on documents online.                                     cost effective.


•   The establishment of triggers as notification alerts for   •    Maintain the highest ethical standards.
    the appropriate action requested.
                                                               •    Promote the objectives of the Commercial Equity
•   A significant reduction in the usage of paper.                  policy.


•   Reduction in contract creation times.                      •    Ensure that the procurement processes comply with
                                                                    the legal framework that governs Rand Water.
All active, expired or terminated contracts entered into
by Rand Water as well as any additional information            During the year under review, Rand Water had
pertaining to the contracts are stored on the Contract         a BEE target of 75-percent, with a stretch to 80-percent.
Management System. Rand Water’s Legal Services                 It attained 81.12-percent; and spent a total of
Division is the only authorised user of the System.            R4 847 434 659.02 in this regard.


                                                                   13                     Rand Water Sustainability Report 2009–2010
Strategic Customer Partnerships
            Table 4: Summary of Customer Value Management Evaluations


                                                                             2008          2009          2010           Difference
                                            Categories
                                                                            % rating      % rating      % rating      (2009-2010)

             Overall perception of value                                      73               82.5         87.1          4.5
             Overall product Index score                                     79.5              86.2         92.6          6.4
             Overall forward planning Index score                            72.4              82.9         87.4          4.5
             Overall water resource Index score                              70.3              83.6         84.7          1.1
             Overall operations and maintenance Index score                  73.0              83.0         87.1          4.1
             Overall billing & administration Index score                    74.7              82.3         89.6          7.4
             Overall strategic competency Index score                        74.9              84           89.6          5.7
             Overall communication Index score                               70.8              81.6         83.4          1.8
             Overall relationship building Index score                       73.5              83.9         87.6          3.7
             Overall price Index score                                       64.3              73.5         79.6          6.1
             Overall image Index score                                       73.2              85.2         89.1          3.9
             Overall RAE Index score                                         71.5              80.0         84.8          4.8



            During the year under review, Rand Water again                  services provided by the Centre. On finalisation
            conducted its Customer Value Management (CVM)                   of a customer’s request, an email is automatically
            Survey to substantiate on its customer requirements, and        generated back to the customer to evaluate the level
            to ensure that it continues to remain within reach of its       of satisfaction.
            strategic objectives of satisfying all its customers.
                                                                         •	 The Customer Relationship Management (CRM)
            The above table is the CVM Survey overview of the               Offline Working system - enables Rand Water staff
            2009-10 financial year, and its comparison with the             members who are not office bound to be able
            previous two financial years.                                   to work off line on the CRM system. The System
                                                                            automatically updates when the staff member
            The Rand Water Forums                                           reconnect to the network.

            The Rand Water Forums (Water Sector Forum, Mining
            Forum and the Industry and Direct Consumers Forum) have
                                                                         •	 The Majuda Voice Logger – the system was
                                                                            introduced for an assessment of quality management
            undergone a review to align themselves with Rand Water’s
                                                                            purposes and it strives to ensure consistency on good
            new corporate objectives. This provided a platform for a
                                                                            quality customer interaction.
            new strategic direction for the forums and its plans.

                                                                         Service Level Agreements
            A working group was established with the intention
            of promoting the development and maintenance of              Each year Rand Water evaluates its Bulk Water Supply
            comprehensive strategies and plans for the forums.           Contract service level compliance, to ascertain how
            Rand Water’s Customer Services Centre is one of the          compliant the organisation has been with regards to
            organisation’s points of contact; during the year under      the implementation of the agreed upon operational
            review, the Centre has remained committed to high levels     standards with all its customers. Although the mines and
            of service delivery.                                         industries contribute 7-percent of Rand Water revenue
                                                                         as compared to the 93-percent contributed by the
            The following new systems were introduced to improve         municipalities; the mines and industries remain equally
            customer service levels:                                     important to Rand Water. During the year under review,
            •	 The customer feedback email system – this is a            the municipalities’ service level rating have remained at
                means of securing customer feedback on the               90-percent over the past three years, the mines have by


Rand Water Sustainability Report 2009–2010                          14
 Summary of service level evaluations


                                                                                                                                                       89
  2010                                                                                                                                                 90
                                                                                                                                                        90.5
                                                                                                                                                      87


                                                                                                                                                            93
  2009                                                                                                                                                 90
                                                                                                                                                          95
                                                                                                                                                         93


                                                                                                                                                       89
  2008                                                                                                                                                  90
                                                                                                                                                      88
                                                                                                                                                       89

                                                                                                                                        74
                                                                                                                                          77
  2007                                                                                                                                72
                                                                                                                                      72


          0                            20                           40                                                60                  80                     100

   Overall Rating                           Municipalities               Mines                                                            Industries & Direct Consumers


5-percent and the industries and direct consumers also                                                             This is attributed to the heavy rains experienced within
indicated a decrease from 93-percent to 87-percent.                                                                Rand Water’s area of supply, as well as the various
                                                                                                                   water demand management interventions made by the
Potable Water Sales                                                                                                different customer segments in response to the national
                                                                                                                   call to reduce non-revenue water by 15-percent. The
The potable water sales during the year under review are
                                                                                                                   consumption of water by mines has also decreased by
1.42-percent below that of the 2008/09 financial year.
                                                                                                                   2-percent in the past five years due to closure of certain
                                                                                                                   mining operations as well as the increasing use of grey
Potable Water Sales                                                                                                water for production purposes by mining houses.

4 000
                                                                                                                   Municipalities consume the bulk of the potable water, the
                                                 3504



                                                             3454
                       3 383




                                                                                                                   amounts consumed by the mines continues to fall, and
                                    3 368




3 500
          3 150




                                                                                                                   the industry and direct consumer consumption levels have
3 000                                                                                                              remained stable.


2 500                                                                                                                            Rand Water’s Five-Year Potable Water Sales Growth
                                                                          Potable water sales – (megalitres/day)




2 000                                                                                                              3 800                                                                 8,0%
                                                                                                                                                                                                 Percentage growth (year-on-year)




                                                                                                                                                                  3 773
                                                                                                                                         6.82%                                  3 710
                                                                                                                                                                                         7,0%
                                                                                                                   3 700
1 500                                                                                                                                   3 668        3 649                               6,0%
                                                                                                                                                                                         5,0%
                                                                                                                   3 600
                                                                                                                                                                   3.39%                 4,0%
1 000                                                                                                              3 500                                                                 3,0%
                                                                                                                            3 434
                                                                                                                                                                                         2,0%
                                                                                                                   3 400
   500                                                                                                                                                                                   1,0%
                           238
              234




                                        229



                                                    217



                                                                  207




                                                                                                                                                                                         0,0%
                                                                                                                   3 300
                  50



                               48



                                            51



                                                        51



                                                                48




                                                                                                                                                                                         -1,0%
      0                                                                                                                                              -0.52%
                                                                                                                   3 200    -0,16%                                                       -2,0%
          2005–        2006–        2007–        2008–       2009–                                                                                                              -1.70%
          2006         2007         2008         2009        2010
                                                                                                                             2006        2007         2008         2009         2010

                  Municipal Customers                                                                                          Total average daily sales (ml/day)               % Growth
                  Mining Customers
                  Industrial/Other Customers
                                                                                                                     15                        Rand Water Sustainability Report 2009–2010
Strategic Customer Partnerships (continued)


            Water Sales and Usage


                             Rand Water Total Potable Water Sales FY 2010


                       1.3%
                      5.59%




                     93.11%



                  Local Municipalities
                  Mines Sales
                  Industrial & Direct Customer Sales




            Table 5: Summary of Customer Value Management Evaluations



                                                                  FY 2010                                         FY 2010
            \
                                                  Budget (ml/d) Actual (ml/d)   % Variance    Budget (ml/d)    Actual (ml/d)      % Variance
             All consumers                             45,600     44,588         -2.22%          45,626           44,913            -1.56%
             Local municipality sales                  42,312     41,551         -1.80%          42.404           41,898            -1.19%
             Mine sales                                2,707       2,458         -9.20%          2,652             2,429            -8.41%
             Industry and direct customer sales         582         579          -0.34%           570               586             2.63%




            Quality of water supply

            Blue Drop Green Drop Initiative                                       11 September 2008. In June 2009, this regulatory
                                                                                  concept was presented to the Drinking Water Regulators
            The Department of Water Affairs and Environment
                                                                                  Network (RegNet) of the World Health Organisation in
            initiated the drinking water quality (DWQ) regulation
                                                                                  Singapore. Regulators were generally impressed with this
            programme in 2005 with the objective of ensuring
                                                                                  fresh concept and what it has achieved in a short space
            the improvement of tap water quality by means of
                                                                                  of time. The Drinking Water Inspectorate (UK) supported
            compliance monitoring. A survey conducted in the
                                                                                  by means of providing advice and exposure to their
            preceding year indicated that less than 50% of
                                                                                  manner of regulation; this through an informal relationship
            municipalities then monitored drinking water quality
                                                                                  which was initially established in 2004.
            as per legislated requirements. The introduction of the
            regulation initiative saw the monitoring performance
                                                                                  The Blue Drop Certification programme is only in its
            improving to 100% by early 2008. However this
                                                                                  second year of existence and promises to be the catalyst
            improvement did not necessarily instil public confidence
                                                                                  for sustainable improvement of South African drinking
            due to the prevailing extensive negative reporting on
                                                                                  water quality management in its entirety. This is derived
            water quality at that stage. This phenomenon triggered
                                                                                  from the evidence of holistic improvements detected in
            the initiation of an incentive-based regulation programme,
                                                                                  various areas of the drinking water quality management
            termed Blue Drop Certification, which commenced on
                                                                                  discipline. In spite of it being early days, it is remarkable


Rand Water Sustainability Report 2009–2010                           16
The number of Water Services Authorities assessed increased from 66% (2009) to 94% (2010).


    2009                                                         2010
         107


                                                                     153




           55                                                          9




     WSAs Assessed                                               WSAs Assessed
     WSAs Not Assessed                                           WSAs Not Assessed




National 2010 Municipal Blue Drop Performance                    >90% (Excellent)
                                                                 75%-90% (Very Good)
                                                                 50%-75% (Good)
                                                                 33%-50% (Needs Attention)
                                                                 <33% (Needs Urgent Attention)


                                                            55% of all Municipalities scored higher than 50% which
                                                            portrays gradual improvement, and 24% of municipal
                                                            drinking water management programmes were found
                                                            to be wanting of more substance, which will ensure that
                                                            good tap water quality could be sustained. But generally
                                                            there has been improvement since the inception of the
                                                            Blue Drop Certification programme.




to note the heightened levels of commitment to drinking          were assessed in 2010). This implies that 347 water
water quality management detected within the municipal           supply systems were assessed for the first time ever.
fraternity. This all is to the good of the general public
who depend on tap water to sustain their livelihoods.       •    The Blue Drop Requirements increased from 6 to 9.
                                                                 Water Safety Plans, Asset Management and DWQ
The significance of this improvement is put into context         Performance Publication were introduced as new
when considering the fact that this improvement occurred         requirements and accumulatively accounted for 25%
in spite of:                                                     of the weighting.


•   The number of systems assessed in 2010 almost
    doubled on the 440 assessed in 2009. (787systems




                                                                17                     Rand Water Sustainability Report 2009–2010
Strategic Customer Partnerships (continued)


                 Compliance & Monitoring Trend (Microbiological)

                          Aug 08                      Jan 09                                                              Jan 10

                 14000

                 12000

                 10000

                 8000

                 6000

                 4000

                 2000

                      0
                                                Samples Taken              Number of Samples Complying


            This graph indicates the immediate improvement in sampling and compliance levels since the inception of the Blue Drop
            Certification Programme. (The reduction in February 2010 is due to the delay in laboratory results submission on the Blue
            Drop System (BDS) and thus not being available at the time of print). This trend though is indicative of an evident paradigm
            shift since the introduction of incentive-based regulation.



             Blue Drop 2010 Performance
                                                                             •   City of Ekurhuleni
             Non Assessed Systems                                            •   Emfuleni
             The 2010 Blue Drop Assessments that were carried                •   Mogale City
             highlighted a significant improvement in compliance in
             the sector. To achieve a Blue Drop status, water services       Four trophies: for Excellence recognition for top
             providers must meet both of the following requirements:         10 municipalities.
             •   Quality of water supplied to consumers                      •   Ekurhuleni
             •   High standard of Water Quality Management System            •   City of Joburg
                                                                             •   Mogale City
             Rand Water maintained its Blue Drop certification, thus         •   City of Tshwane
             ensuring the municipalities and public it serves of a
             continued commitment to sustain a safe water supply and         The audit also served to highlight improvements that
             quality management systems.                                     are required in this sector. Out of the 162 Water
                                                                             Services Authorities that are in the country, nine did not
             Rand Water also assisted the top six municipalities within      participate in the process. The Department of Water
             its service area of supply to obtain Blue Drop status.          Affairs and Environment have undertaken to pay special
                                                                             attention to these municipalities in order to ensure that the
             Six certificates of Excellent Drinking Water Quality            public is informed on the state of drinking water quality
             Management were awarded to:                                     management in water supply systems under their areas of
             •   Rustenburg Water Supply System                              jurisdiction. In order to assist in this process, Rand Water
             •   City of Tshwane                                             has also undertaken to assist three of the municipalities
             •   City of Johannesburg                                        that did not comply.


Rand Water Sustainability Report 2009–2010                            18
Table 6: The Blue Drop Performance noted in the audit carried out revealed the following results:


                                     Blue Drop Scores               Microbiological                    Chemical                         Physical
                                                                       Compliance                     Compliance                     Compliance
    Gauteng                                85.54%                        99.50%                         99.70%                          99.60%
    National Average                       70.75%                       97.30%     1
                                                                                                       99.50%      2
                                                                                                                                      99.00%       2


1
    Microbiological compliance will remain the main benchmark for DWQ performance measurement. The National Standard (SANS 241:2006) sets a
target of 97% while the Blue Drop excellence target is set at 99%
2
    With the drive to enhance data credibility (through the “step ladder” approach towards accreditation and implementation of water safety plan informed
monitoring programmes), it is expected that these compliance figures would slightly decline, yet the target will remain 95% as set in the national standard


Catchment Management                                                               well as selected water quality variables. The instruments
                                                                                   are linked to data loggers equipped with cell phone
Rand Water staff actively engage with stakeholders at
                                                                                   technology, through which the data is sent to a central
Catchment Forum level to address water management
                                                                                   server. This real time information of the determinants
issues. Water quality reports are produced and
                                                                                   measured is available online to staff in the Water Quality
discussed, highlighting both “hot spot” issues as well as
                                                                                   Specialist Services Department of the Organisation.
cumulative trends in water quality

                                                                                   The equipment is also programmed to send warnings
Rand Water actively participates in the Upper Vaal
                                                                                   via SMS to the relevant staff members’ cell phones when
Catchment Management Agency (CMA). Engagement
                                                                                   certain water quality variables exceed specified limits.
also takes place at a higher level through the Vaal
                                                                                   This system will vastly improve response time to pollution
Barrage Catchment Executive Committee (VBCEC) and
                                                                                   incidents, as well as significantly improve the information
various government steering committees. This process
                                                                                   base, which will contribute to a better understanding
continues even in the absence of the establishment of the
                                                                                   of the dynamics of the Vaal River system. The system
Upper Vaal CMA, as Rand Water views the protection
                                                                                   has proved very effective in enabling Rand Water to
of its source waters as vital to its ability to provide an
                                                                                   neutralise problem areas as they arise.
uninterrupted supply of world class potable water

                                                                                   An informed customer base is also important to Rand
The rivers and dams in the catchments of Rand Water’s
                                                                                   Water and in this regard the www.resevoir.co.za
area of interest are extensively monitored and a great
                                                                                   website, which provides a wealth of water quality related
deal of effort goes into communicating the water quality
                                                                                   information in respect of both drinking and source water
status of the catchments to the consumers. This takes
                                                                                   quality, is maintained for public information. The website
place through involvement in each and every Catchment
                                                                                   is extensively used by the public, research institutions,
Forum and the Upper Vaal Water Management Area’s
                                                                                   consultants and water quality managers.
website, www.resevoir.co.za, which is maintained by
Rand Water. Rand Water fulfils the role of water quality
                                                                                   Climate change
auditor and facilitator in these forums, as it has the most
comprehensive database of chemical, biological, and                                During the year under review, climate change was again
microbiological information.                                                       on the top of the international political agenda, and it
                                                                                   continues to make serious inroads in international trade
As a result of the increasing water quality problems,                              markets as well. It is obvious that business will have to
economic pressures and uncertainties surrounding                                   play a major role in the fight against climate change,
incidents such as fish kills, Rand Water installed a                               and Rand Water has decided to respond to remain
number of electronic monitoring units at selected sites in                         abreast with developments and proactively implement
the Vaal and Wilge Rivers and the Vaal River Barrage                               measures to align itself with government’s position.
reservoir. These instruments measure flow at weirs as


                                                                                       19                          Rand Water Sustainability Report 2009–2010
Strategic Customer Partnerships (continued)


            South Africa’s commitment at Copenhagen can be                Fortunately, during the year under review, improvements
            consolidated as follows:                                      in the effluent levels from the waste water treatment plants
            Depending on the level of international financial support     have already been observed. This can be ascribed to
            to the country and a legally-binding agreement at the         Rand Water’s interventions; and the monitoring and
            United Nations Climate Change Conference (The                 reporting of spills, combined with the “Green Drop”
            Conference is officially referred to as the 16th session of   assessments being executed by the Department of Water
            the Conference of the Parties – COP 16), such actions         Affairs and Environment. The fact that action is being
            contemplate:                                                  taken is comforting, and is an indication that awareness
                                                                          levels among stakeholders remain high. Rand Water
            •   34 percent deviation below the “Business as Usual”        has also undertaken to assist municipalities that may
                emissions growth trajectory by 2020; and,                 encounter problems with their waste treatment works and
                                                                          to this end, several initiatives are already underway.
            •   42 percent deviation below this trajectory by 2025.       Efforts in this area are detailed under the Environmental
                                                                          Rehabilitation Projects section.
            Rand Water acknowledges the potential impact of
            climate change on its operations, and has initiated a         The Vaal Barrage catchment receives extensive volumes
            programme to include climate change matters in all            of water from point source discharges. The point source
            spheres of business planning.                                 discharges include the major wastewater treatment
                                                                          works run by Joburg Water, East Rand Water Care
            As a result of South Africa’s sensitive water hydrology,      Company (ERWAT) and Metsi-a-Lekoa as well as the
            general aridity and high precipitation variability in space   discharges from gold mines. A significant portion of
            and time, South Africa is especially vulnerable to climatic   the contamination arises from mines and there are also
            change.                                                       industrial effluent discharges from the Sasolburg and
                                                                          Vanderbijlpark areas. The discharge volumes from the
            Rand Water is exposed to a number of risks, both in           wastewater treatment plants will grow with time as the
            terms of water supply and water quality, and will react to    water requirements grow and the level of services are
            this threat by preparing response strategies dealing with     improved with the expansion of water borne sewerage
            these identified risks.                                       systems in the urban areas.


            These risks include issues such as:                           The two most important water quality issues to be
            •   Security of supply                                        managed in the Barrage catchment for most of the
            •   Extended maximum demand periods                           sample points are biological (in the form of faecal
            •   Algal blooms                                              coliforms) and chemical (in the form of gold mining
            •   Waterborne diseases                                       and industrial impacts through manganese, sodium and
            •   Damage to infrastructure                                  sulphate).


            Rand Water is mindful that that such preparedness is          The more difficult issue of water quality management
            likely to make the difference between a water-secure          is that of controlling diffuse sources of pollution. In this
            country and poverty- stricken, water-insecure country.        regard, the biological impact of uncontrolled wastewater
                                                                          runoff from informal settlements, burst pipes due to lack
            Impact of run-off, contamination of water sources,            of maintenance and general lack of waste management
            discharge of raw sewerage into water sources.                 has seen deterioration in biological water quality over
                                                                          the year. This can and will lead to potential harmful
            The spillage of raw sewage continued in the Vaal
                                                                          effects on the human populations who use the Barrage
            Barrage reservoir with high levels of nutrients and faecal
                                                                          catchment river systems for domestic and recreation uses.
            bacteria.


Rand Water Sustainability Report 2009–2010                           20
Regarding the eutrophic status of the Vaal River system,      comprehensive and more stringent internal production
the Vaal River downstream of the Vaal Dam is severely         specifications, designed to provide Rand Water with a
impacted resulting in a degradation of ecological             buffer, so that it can deliver to its customers with certainty
integrity. It must be noted that the Vaal Barrage catchment   on the SANS 241 specifications.
is described as a serious “hotspot” with the highest
levels of pollution (bacteria, algae, heavy metals,           Water Quality measurement and Reporting
salts and nutrients) recorded throughout the entire Vaal
                                                              Rand Water has extensive measurement capacity
River system. The pollution levels in the Klip River and
                                                              consisting of three ISO 9001 certified site laboratories,
Rietspruit catchments of the Vaal Barrage catchment
                                                              more than 500 online instruments and an offsite ISO
are unacceptably high and the scale of nutrient inputs
                                                              17025, as well as an ISO 43 accredited laboratory.
far exceeds the capacity of the natural environment to
                                                              Extensive monitoring programs during the year under
assimilate the waste discharged into these river systems.
                                                              review were documented and complied to. An online
Steps are being taken to address the contamination and
                                                              instruments upgrade program was also started.
some of the successes scored so far are covered in the
Environmental Rehabilitation section of the report.
                                                              Water Quality Management System

Acid Mine Drainage                                            Rand Water is committed to a documented systematic risk
                                                              based water quality management system. In line with this,
The decanting of acid mine drainage from various mines
                                                              a Water Quality Safety Plan (WQSP), which is based on
in the Johannesburg region received enormous attention
                                                              Hazard Analysis and Chemical Control (HACC) and ISO
in the media. The decanting of this water poses serious
                                                              9001 principles, has been documented.
threats with respect to the destruction of infrastructure
as a result of the formation of sinkholes as well as the
                                                              A preliminary detailed water quality risk register has
contamination of the catchment area through water
                                                              also been established. An initiative to align different site
spillage into streams. Proposals to treat this water to
                                                              procedures with the WQSP has commenced. In addition,
potable standards are being dealt with at government
                                                              an organisation-wide multi-stakeholder water quality
level.
                                                              management standing committee has remained functional
                                                              over the past five years.
An additional concern with respect to acid mine water
is the high number of mining applications for new coal
                                                              Water Quality Benchmarking
mines to feed Eskom’s increased demand. Most of
these mines are in the upper reaches of the Vaal River’s      During the year under review, Rand Water continued
catchment, and will destroy the lifeline of Rand Water’s      to benchmark the quality of water supplied to local
consumers if pollution cannot be curtailed. Rand Water        authorities against the World Health Organisation
continues to engage with various interested parties in        (WHO) drinking water quality guidelines. The results
order to address any issues arising therefrom.                compared favourably with the WHO water quality
                                                              guidelines.
Production Water
Quality Assurance                                             Water Quality in the Bulk
                                                              Distribution Network
Water Quality Specifications
                                                              Water Quality Specifications
Rand Water has adopted the SANS 241 drinking water
quality standard (95% compliance to Class I, and 99%          Rand Water has adopted the SANS 241 drinking water
compliance to Class II) as delivery specification to its      quality standard (95% compliance to Class I, and 99%
customers. In addition, the organisation has a more           compliance to Class II) as a delivery specification to its


                                                                21                        Rand Water Sustainability Report 2009–2010
Strategic Customer Partnerships (continued)


            customers. In the absence of a national specification          Determination of Water Quality Risks
            for a particular parameter or group of parameters,             It is necessary to determine those water quality risks that
            benchmarking against the WHO Drinking Water Quality            can affect the integrity of the supply. During the year
            Guidelines were adopted as the norm. The drinking              under review, a water quality risk register for the bulk
            water quality delivered to Rand Water customers during         distribution network was developed after interacting with
            the year under review remained of excellent quality.           the relevant stakeholders within the Bulk Water Services
            All physical, chemical and biological health related           cluster. This register, which is one of the Blue Drop
            parameters were complied with.                                 requirements, is updated on an ongoing basis.


            Water Quality Assurance Activities                             External Verification of the Quality of Potable Water
                                                                           supplied by Rand Water to Local Authorities
            Alignment of Site Procedures to the Requirements of the
                                                                           To ensure confidence in the quality of the water supplied
            Water Quality Safety Plan (WQSP)
                                                                           by Rand Water, an independent water quality audit
            Rand Water began an initiative to align its different site
                                                                           was again conducted during the year under review. The
            procedures with the WQSP. Areas where procedures
                                                                           organisation subjected itself to an independent system to
            were required were identified and aligned to those of the
                                                                           assess water quality supplied to customers. The Centre
            WQSP. This will continue to be an ongoing process to
                                                                           for Science, Information and Industrial Research (CSIR)’s
            ensure that water quality assurance activities are adhered
                                                                           Analytical Services team was contracted to render the
            to throughout the entire bulk distribution network, and to
                                                                           service, and the result of the exercise can be seen in the
            ensure that initiatives for public health protection via the
                                                                           Table 7 on the following page.
            delivery of safe drinking water are implemented.




Rand Water Sustainability Report 2009–2010                           22
Table 7: Water quality compliance in the Bulk Distribution network as measured by independent third party (CSIR) –
Customer Confidence Report.


                                                             Specifications (based on SANS241: 2005)
                                                 Units                                                         No of     Achieved compliance levels
               Parameter                                                  Required compliance
                                              of measure                                                       results
                                                            95% min to Class I           99% min to Class II              Class I         Class II
SPECIFICATIONS
Chemical and Physical properties
Colour                                (mg / l as Pt)              < 20                         ≤ 50             60        100.0%         100.0%
Conductivity                          (mS / m)                   < 150                         ≤ 370            60        100.0%         100.0%
pH                                    (pH units)              ≥ 5 to ≤ 9.5                  ≥ 4 to ≤ 10         60        100.0%         100.0%
Turbidity                             (NTU)                        <1                           ≤5              60        100.0%         100.0%
Total Dissolved Solids                (mg / l)                   < 1000                       ≤ 2400            60        100.0%         100.0%
Taste                                 (FTN)                        <5                          ≤ 10             60        100.0%         100.0%
Odour                                 (TON)                        <5                          ≤ 10             60        100.0%         100.0%
Organic Determinants
Total Trihalomethane                  (ug / l)                   < 200                         ≤ 300            60        98.3%          100.0%
Phenols as C6H5OH                     (ug / l)                    < 10                         ≤ 70             60        100.0%         100.0%
Dissolved Organic Ca                  (mg / l)                    < 10                         ≤ 20             60        100.0%         100.0%
Micro Elements
Antimony                              (μg / l as Sb)              < 10                         ≤ 50             60        100.0%         100.0%
Arsenic                               (μg / l as As)              < 10                         ≤ 50             60        100.0%         100.0%
Cadmium                               (μg / l as Cd)               <5                          ≤ 10             60        100.0%         100.0%
Chromium (Total)                      (μg / l as Cr)             < 100                         ≤ 500            60        100.0%         100.0%
Cobalt                                (μg / l as Co)             < 500                        ≤ 1000            60        100.0%         100.0%
Cyanide (Recoverable)                 (μg / l as CN)              < 50                         ≤ 70             60        100.0%         100.0%
Lead                                  (μg / l as Pb)              < 20                         ≤ 50             60        100.0%         100.0%
Mercury                               (μg / l as Hg)               <1                           ≤5              60        100.0%         100.0%
Nickel                                (μg / l as Ni)             < 150                         ≤ 350            60        100.0%         100.0%
Selenium                              (μg / l as Se)              < 20                         ≤ 50             60        100.0%         100.0%
Vanadium                              (μg / l as V)              < 200                         ≤ 500            60        100.0%         100.0%
Macro Elements & Miscellaneous Determinants
Aluminium                             (mg / l as Al)              < 0.3                        ≤ 0.5            60        100.0%         100.0%
Ammonia                               (mg / l as N)                <1                           ≤2              60        100.0%         100.0%
Calcium                               (mg / l as Ca)             < 150                         ≤ 300            60        100.0%         100.0%
Chloride                              (mg / l as Cl)             < 200                         ≤ 600            60        100.0%         100.0%
Copper                                (mg / l as Cu)               <1                           ≤2              60        100.0%         100.0%
Fluoride                              (mg / l as F)                <1                          ≤ 1.5            60        100.0%         100.0%
Iron                                  (mg / l as Fe)              < 0.2                         ≤2              60        100.0%         100.0%
Magnesium                             (mg / l as Mg)              < 70                         ≤ 100            60        100.0%         100.0%
Manganese                             (mg / l as Mn)              < 0.1                         ≤1              60        100.0%         100.0%
Nitrate & Nitrite                     (mg / l as N)               < 10                         ≤ 20             60        100.0%         100.0%
Potassium                             (mg / l as K )              < 50                         ≤ 100            60        100.0%         100.0%
Sodium                                (mg / l as Na)             < 200                         ≤ 400            60        100.0%         100.0%
Sulphate                              (mg / l as SO4)            < 400                         ≤ 600            60        100.0%         100.0%
Zinc                                  (mg / l as Zn)               <5                          ≤ 10             60        100.0%         100.0%
 Microbiological
(microbiological specifications do not have a class categorisation but specific percentage compliance requirements)
                                                                95%Min                        99%Min            60       95%Min          99%Min
E. Coli                               (cfu per 100 ml)        Not detected                  not detected        60        100.0%         100.0%
Standard Plate Count                  (cfu per 1 ml)             < 100                        < 5000            60        100.0%         100.0%
Total Coliforms                       (cfu per 100 ml)        Not detected                     < 10             60        100.0%         100.0%
Faecal Coliforms                      (cfu per 100 ml)        Not detected                     < 10             60        100.0%         100.0%
Coliphages                            (per 10ml)              Not detected                 Not detected         60        100.0%         100.0%
Giardia                               (org/10 litres)         Not detected                 Not detected         60        100.0%         100.0%
Cryptosporidium                       (org/10 litres)         Not detected                 Not detected         60       100.0%          100.0%
Enteric viruses                       (per 10 litres)         Not detected                 Not detected         60       100.0%          100.0%
Free Chlorine and mo                  (mg / l)                    ≥ 0.2                                         60        86.7%
Notes
(1) Specification date of effect: July 2007
(2) Guideline derived from SANS 241: 2005 operations alert and industry practices



                                                                                    23                         Rand Water Sustainability Report 2009–2010
Strategic Customer Partnerships (continued)


                    Routine Organics monitoring
                                                                                                  none of these compounds were detected at levels that
                    Monitoring of organic parameters is subject to an                             are considered a danger to human health. A set of water
                    ongoing investigation as the measurement of these                             quality monographs for each of the organic compounds
                    parameters is complex, and limited analytical capacity                        or group of organic compounds was produced. The
                    is available in South Africa. Table 8 contains some                           water quality monographs are used as an information
                    compounds that have been assessed in the Rand Water                           and support tool.
                    drinking water value chain. During the year under review,


Table 8: Recommended list of priority organic contaminants for analysis in the drinking water supply chain.


                       Organic Contaminant                                       Classification                          Concern to the Drinking Water Industry

INDUSTRIAL CHEMICALS
Benzene                                                   Volatile organic compound                              chronic lymphatic leukaemia
Chlorobenzene                                             Volatile organic compound                              Liver and kidney toxicity
1,2-Dichlorobenzene                                       Volatile organic compound                              Liver and kidney toxicity
1,2,4-Trichlorobenzene                                    Volatile organic compound                              Changes in adrenal glands
1,4-Dichlorobenzene                                       Volatile organic compound                              cirrhosis of the liver
Benz [a] pyrene                                           Polynuclear Aromatic Hydrocarbon                       Human carcinogenicity, potential EDC
Bisphenol A                                               Plasticizer                                            Endocrine disruption
Dibutylphthalate (DBP)                                    Plasticizer                                            Endocrine disruption
Di (2-ethylhexyl) phthalate                               Plasticizer                                            Endocrine disruption
Ethylbenzene                                              Volatile organic compound                              Taste and odour, health
Glycol esters                                             Volatile organic compound                              Taste and odour
Octylphenol                                               Surfactant                                             Endocrine disruption
p-Nonylphenol                                             Surfactant                                             Endocrine disruption
Polychlorinated biphenyls [PCBs                           Chlorinated biphenyls                                  Teratogenicity
Toluene                                                   Volatile organic compound                              Taste and odour
Xylene isomers                                            Volatile organic compound                              Taste and odour
2,3,7,8-Tetrachlorodiphenyldioxin(TCDD                    Dioxin                                                 Endocrine disruption, Teratogenicity
Nitrilotriacetic acid (NTA)                               Detergent metabolite                                   Potential human carcinogenicity, IARC
Di-2-(ethylhexyl) adipate (DEHA)                          Plasticizer                                            Endocrine disruption
Dibutyltin (DBT)                                          Organotin                                              Reproductive toxicity
Dimethyltin (DMT)                                         Organotin                                              Reproductive toxicity
Tributyltin (TBT)                                         Organotin                                              Endocrine disruption
PESTICIDES
2,4-Dichlorophenoxyacetic acid                            Herbicide                                              Internal Haemorrhage
Aldrin                                                    Organochlorine pesticide                               Liver & CNS toxicity
Atrazine                                                  S-triazine herbicide                                   Endocrine disruption
Chloropyrifos                                             Organochlorine pesticide                               Decreased plasma ChE
Cyhexatin                                                 Organotin pesticide                                    Reproductive toxicity
DDT                                                       Organochlorine pesticide                               Endocrine disruption
DDE                                                       DDT metabolite                                         Endocrine disruption
Dieldrin                                                  Organochlorine pesticide                               Endocrine disruption
Diquat                                                    Bipyridillium salt pesticide                           Liver & kidney toxicity
Endosulfan                                                Organochlorine pesticide                               Human carcinogenicity, potential EDC
Endrin                                                    Organochlorine pesticide                               Liver problems
Heptachlor                                                Organochlorine pesticide                               Liver and CNS damage
Heptachlor epoxide                                        Organochlorine pesticide                               Liver toxicity
Lindane [γ-BHC]                                           Organochlorine pesticide                               Liver and CNS damage
MCPA                                                      Phenoxy acetic acid herbicide                          Male reproductive toxicity
Methoxychlor                                              Organochlorine pesticide                               Reproductive problems, potential EDC
Paraquat                                                  Bipyridillium salt pesticide                           Chronic pneumonitis
Simazine                                                  S-triazine Herbicide                                   Endocrine disruption
Terbutylazine (TBA)                                       S-triazine herbicide                                   Reduced body weight
Vinclozolin                                               Fungicide                                              Endocrine disruption
Cis-Chlordane                                             Metabolite of Chlordane                                Hepatic necrosis
Trans-Chlordane                                           Metabolite of Chlordane                                Hepatic necrosis




Rand Water Sustainability Report 2009–2010                                    24
(Table 8: continued)

                          Organic Contaminant                                       Classification                        Concern to the Drinking Water Industry

β-Endosulfan                                                    Metabolite of Endosulfan                          Human carcinogenecity, potential EDC

Endosulfan sulphate                                             Metabolite of endosulfan                          Endocrine disruption

Acetochlor                                                      Chloroacetamide,pesticide                         Salivation, decrease of sugar levels

Acetochlor ethane sulfonic acid                                 Reaction product of Acetochlor                    More persistent and toxic than parent compound

Acetochlor oxanilic acid                                        Reaction product of Acetochlor

Alachlor                                                        Chloroacetamide,pesticide                         Liver , kidneys problems

Alachlor ethane sulfonic acid                                   Reaction product of Alachlor                      More persistent and toxic than parent compound

Alachlor ethane oxanilic acid                                   Reaction product of Alachlor                      More persistent and toxic than parent compound
Hexachlorocyclohexane isomers:
                                                                Metabolites of HCH organochlorine pesticide       Chronic pneumonitis
    β-HCH, β-HCH, β-HCH
2-(2,4,5-TrichloroPhenoxy acetic, Silvex, Fernoprop             Phenoxy acetic acid herbicide                     Hepatic and renal toxicity
                                                                                                                  Reduced body weight, increased liver and
2,4,5-T-(Trichlorophenoxyacetic acid)                           Phenoxyacetic acid herbicide
                                                                                                                  kidney weight
DISINFECTION BY-PRODUCTS
2-Chlorophenol                                                  Phenol                                            Reproductive effects, T&O problems
2,4-Dichlorophenol                                              Phenol                                            Delayed sensitivity response, T&O problems
2,4,6-Trichlorophenol                                           Phenol                                            Mutagenicity in vivo, T&O problems
Pentachlorophenol                                               Phenol                                            Cancer, liver and kidney effects
Chloroform                                                      Disifection by-product                            Kidney and liver toxicity
Bromoform                                                       Disinfection by-product                           Kidney, bladder, renal effects
Bromodichloromethane                                            Disifection by-product                            Renal cytomegaly, liver effects
Dibromochloromethane                                            Disifection by-product                            Liver & kidney damage
Dichloroacetonitrile                                            Disinfection by-product                           Developmental toxicity
Dibromoacetonitrile                                             Disinfection by-product                           Reduced body weight
Trichloroacetonitrile                                           Disinfection by-product                           Lachrymator, severe eye irritant
Monochloroacetic acid                                           Disinfection by-product                           Genotoxicity, cytotoxicity
Dichloroacetic acid                                             Disinfection by-product                           CNS damage, liver &kidney effects
Trichloroacetic acid                                            Disinfection by-product                           Cytotoxicity
Bromoacetic acid                                                Disinfection by-product                           Genotoxicity, Cytotoxicity
Bromochloroacetic acid                                          Disinfection by-product                           Reproductive effects
Dibromoacetic acid                                              Disinfection by-product                           Liver toxicity
Formaldehyde                                                    Disinfection by-product                           Irritant to nasal cavity
Trichloroacetaldehyde                                           Intermediate product                              Harmful if inhaled
SYNTHETIC ORGANIC POLYMER RESIDUES
Acrylamide                                                      Water Treatment residue                           Nerve damage, benign tumours
Epichlorohydrin                                                 Water treatment residue                           Increased chronic cancer risk
Diallyldimethylammonium Chloride                                Water treatment residue                           Genotoxic
Dimethylamine                                                   Water treatment residue                           Tissue destruction
1,3-Dichloro-2-propanol                                         Water treatment residue                           Moderately toxic
2,3-Dichloro-1-propanol                                         Water treatment residue                           Not easily degraded
3-Chloro-1,2-propanediol                                        Water treatment residue                           Carcinogenicity, male infertility
NATURAL AND SYNTHETIC HORMONES
17-Estradiol                                                    Hormone                                           Endocrine disruption
Estriol                                                         Hormone                                           Endocrine disruption
Estrone                                                         Hormone                                           Endocrine disruption
17-Ethinylestradiol                                             Hormone                                           Endocrine disruption
Dietylstilbestrol (DES)                                         Hormone                                           Endocrine disruption
ALGAL TOXINS
Microcystin-(LR+YR+RR)                                          Cyanotoxin                                        Hepatotoxins (liver toxins)
Anatoxin-a                                                      Cyanotoxin                                        Neurotoxin
Homoanatoxin-a                                                  Cyanotoxin                                        Neurotoxin
Anatoxin-a(S)                                                   Cyanotoxin                                        Neurotoxin
Saxitoxins                                                      Cyanotoxin                                        Paralytic Shellfish poisoning
Cylindrospermopsin                                              Cyanotoxin                                        Liver toxicity
Nodularin                                                       Cyanotoxin                                        Liver toxicity

T&O – Taste and odour                           EDC – Endocrine disrupting Chemical
CNS – Central Nervous System                    ChE – Cholinesterase Enzyme
BHC – Benzene Hexachloride                      IARC – International Agency for Research on Cancer


                                                                                   25                         Rand Water Sustainability Report 2009–2010
Infrastructure and the Approach to the
Management of Strategic Assets

            Rand Water’s infrastructure is a multi-billion rand asset that   Planning
            needs to be managed and leveraged in order to extract
                                                                             After decades of expansion to meet the challenge of
            maximum value, and has to be monitored to avoid risk.
                                                                             infrastructural development and population growth,
            With 70-percent of the Organisation’s infrastructure
                                                                             Rand Water’s current infrastructure capacity is more than
            expenditure work taking place through augmentation
                                                                             adequate to meet its customer’s requirements until 2012.
            to meet the growth in demand; other projects are also
                                                                             This is, in itself, remarkable considering that in 1965,
            initiated to reduce operating costs, improve treatment
                                                                             Rand Water was supplying just 1 000 Megalitres per
            processes, enhance plant safety, as well as to extend the
                                                                             day (Ml/d) and that demand is expected to increase
            life of its existing assets. Rand Water estimates demand
                                                                             four-fold to 4 000 Ml/d by 2012.
            in growth to continue, but with a long term decline in
            annual growth rates.
                                                                             Rand Water is now ensuring that it will be ready for
                                                                             the demands of 2020 and beyond, by focusing on
            The age and replacement value of existing assets will
                                                                             infrastructure refurbishment and development. The
            also continue to increase. In response, Rand Water
                                                                             Organisation works on a 20-year planning horizon,
            has an asset management division to co-ordinate and
                                                                             driven mainly by projections and the forecasts of future
            optimise its existing asset management streams. Best
                                                                             water consumer needs. This involves extensive research
            practice will continue to be confirmed for design,
                                                                             and the analysis of trends and usage patterns, and
            operation, maintenance, rehabilitation and the disposal
                                                                             through the engagement with various stakeholders on
            of each asset category, in order to support the required
                                                                             their expectations.
            levels of service at a minimum lifecycle cost. The
            management of the existing assets will therefore be
                                                                             Capital expenditure is provided for the development of
            planned in conjunction with augmentation to meet
                                                                             new infrastructure, and the refurbishing and upgrading
            demand growth.
                                                                             of existing infrastructure. Project approvals incorporate
                                                                             numerous areas, including pipeline links to reservoirs,
            Infrastructure
                                                                             pumping stations and purification works.
            Rand Water operates a network of 3 500 km of
            pipelines, including two large combined pumping                  By maintaining and expanding its infrastructure, Rand
            and purification stations (situated at Vereeniging               Water is thus securing and sustaining water supply with
            and Zuikerbosch), four booster pumping stations                  regards to quality and quantity - the core of its business.
            (Zwartkopjes, Palmiet, Mapleton and Eikenhof) and a              Rand Water plans to spend R8 billion in the next five
            number of enclosed reservoirs. Two-thirds of the value           years on the upgrading and refurbishing of its water
            of this infrastructure, estimated to be worth R60-billion        supply infrastructure. Of this, 70 percent is allocated for
            at replacement value, is located within Rand Water’s             augmentation schemes, with the remaining portion being
            pipelines infrastructure.                                        allocated for renovations and the upgrade of its existing
                                                                             infrastructure.




Rand Water Sustainability Report 2009–2010                          26
Rand Water Supply System




Rand Water primarily draws raw water from the Vaal         •    Zwartkopjes (green) – central Johannesburg and a
River System. Two river stations – Zuikerbosch and              high-lying portion of the East Rand.
Vereeniging – abstract, purify and pump into the network
some 98% of the water supplied to our customers. About     •    Palmiet (blue) – eastern and northern Johannesburg,
90% of this water is further pumped by four primary             large parts of Tshwane, and western portions of
booster stations situated on the southern side of the           Ekurhuleni.
Witwatersrand ridge.
                                                           •    Mapleton (yellow) – central and eastern parts of
The portions of the network supplied by each pumping            Tshwane and Ekurhuleni, and selected areas in
station are indicated by colour coding all significant          Mpumalanga.
customer supply points on the map as follows:
                                                           Projected Growth in Water Demands
•   Zuikerbosch / Vereeniging direct (brown) – southern
                                                           Total average daily demand for the Rand Water
    Gauteng and northern Free State (localised), in
                                                           network is projected to increase from the current 3700
    addition to supply to all booster pumping stations.
                                                           Ml/d to around 5200 Ml/d in 2025. This gives an
                                                           average rate of demand growth of 2.1% per annum
•   Eikenhof (pink) – western and north-western
                                                           over this period. The three metros supplied by Rand
    Johannesburg, the West Rand and greater
                                                           Water –Johannesburg, Ekurhuleni and Tshwane – are all
    Rustenburg.


                                                               27                     Rand Water Sustainability Report 2009–2010
Infrastructure and the Approach to the Management of Strategic Assets (continued)


            projected to grow at this rate. The metros consume 75%
            of water supplied from our network.


            Projected peak demands by main system

            The hydraulic modelling process, forecast demands are
            added at each significant supply point. This allows the
            estimation of peak flows in each pipeline, and peak
            demands on each of the pumping stations. Results for
            each of the major systems are given in the table below
            (quoted capacities exclude standby units).


            Table 9 – Peak demand forecasts and augmentation dates for main pumping stations


                                                Proposed          Proposed                    Projected peak day demands
                                  Design
                                                additional         year of                                (Ml/d)
                  Station        capacity
                                                 capacity      augmentation
                                  (Ml/d)
                                                  (Ml/d)        (first phase)      2015        2020        2025       2030        2035
              Zuikerbosch          3900           1200                 2015        3910        4500       4030        4550        4080
              Vereeniging          1400             Nil                N/A         1400        1400       1400        1400        1400
              Clarens Scheme        Nil           1000                 2025                               1000        1000        2000
              Eikenhof             2000             Nil                N/A         1400        1550       1700        1840        1980
              Zwartkopjes          800             200                 2012        700         760         820         880         930
              Palmiet              1870            600                 2015        1880        2100       2300        2500        2700
              Mapleton             960             300                 2016        920         1040       1140        1240        1340



            Pipeline renovation

            Less than 10-percent of Rand Water’s 3 500-km pipeline              15 and 50 years old. A programme of refurbishment,
            network is constructed from concrete, the balance are               renovation and replacement is therefore critical. With
            manufactured from steel. Over the next five years, Rand             this in mind, in 2005 Rand Water, commissioned Rand
            Water will renovate or replace all its concrete pipelines           Water Services (Pty) Ltd to conduct an aerial survey of
            – about 200 km – with steel pipes where the condition               its pipeline network through the use of thermal remote
            is not acceptable in terms of risk. Thereafter, an ongoing          scanning technology. Thermal remote scanning detects
            repetitive condition assessment will be carried out with            leaks in large diameter pipes, allowing for early repairs,
            the exercise repeated, as necessary. Steel pipes are                and a reduction in water loss.
            more suitable than concrete, as they tend to develop
            leaks, rather than rupture. Concrete is more susceptible            During the aerial survey, digital seamless maps are
            to rupturing, and thus potentially causing damage to both           produced, and these are geographically modified for use
            people and property.                                                in provincial or local government Geographic Information
                                                                                Systems (GIS). High-resolution infrared images are
            A percentage of Rand Water’s pipelines are in the region            produced together with a high definition video output
            of 70 years in age, with the overall majority between               linked with Global Positioning System (GPS) information.




Rand Water Sustainability Report 2009–2010                         28
 Capital Works Projects Including Moveable Assets (2009-2014)

             1   800
             1   600
             1   400
             1   200
             1   000
 R’million




                 800
                 600
                 400
                 200
                   0
                         June 10           June 11            June 12            June 13          June 14           June 15
                          Actual           Planned            Planned            Planned          Planned           Planned
                                                                  Year Ending June



Infrastructure Expansion and                                            and maintain the water pipeline after its construction.

Rehabilitation Projects                                                 The Environmental Impact Assessment (EIA), servitudes
                                                                        processes and the design are currently underway. It is
                                                                        anticipated that this project will be commissioned in
Specific Pipeline Renovation Projects
                                                                        November 2012.
The phased reconditioning of the 1800 mm
diameter O2 pipeline is an ongoing project since its                    Western Highveld Region
commencement in the previous financial year. The 32km
                                                                        Rand Water was appointed as the implementing agent
long pipeline, which runs from Alberton to Kempton Park,
                                                                        for the Mpumalanga Western Highveld Region by
has taken two years to re-condition, largely due to the
                                                                        Department of Water Affairs and Environmental Affairs.
length of the pipeline and the need to avoid operational
                                                                        Rand Water’s engagement is for the management,
disruption, particularly at peak demand periods. The
                                                                        operation and maintenance of the water supply services
project involves inserting steel lining into five kilometres of
                                                                        in the southern part of the Western Highveld Water
the O2 pipeline, as well as the fixing and renovating of
                                                                        Supply Scheme. This also includes the Kungwini bulk
its joints and valve chambers.
                                                                        water supply services in the Bronkhorstspruit, Ekangala
                                                                        and Ekandustria areas.
Implementation of pipeline from Bloemendal
pumping station to Delmas
                                                                        Rand Water’s involvement with the short term support
In October 2008, Rand Water, together with the                          intervention has positively impacted the following aspects
Department of Water and Environmental Affairs,                          of bulk potable water services provision:
the Mpumalanga Department for Provincial and                            •    Water quality
Local Government, the Delmas Local Municipality                         •    Water supply management
(now the Victor Khanye Local Municipality) entered                      •    Equitable distribution to cross-border communities
into an agreement on this 34km project. In terms of
the agreement, Rand Water was appointed as the                          The Department of Water Affairs and Environment has
implementing agent, to construct a 500mm diameter                       extended the appointment of Rand Water, with the
water pipeline from its Bloemendal pumping station to                   additional responsibility of providing services to the entire
the Municipality. Rand Water will continue to operate                   Western Highveld Region.




                                                                            29                    Rand Water Sustainability Report 2009–2010
Infrastructure and the Approach to the Management of Strategic Assets (continued)


Table 10: Rand Water Capital Expenditure at 30 June 2010


               Budget Category                          Budget               Actual Expenditure             Variance,          Actual against Budget

                                                           R                         R                          R                       %

Independent Capital Projects                             938,594,762               887,632,202                 (50,962,560)                        95%

Supplementary Budgets: Moveable Assets                    59,286,419                 46,324,460                (12,961,959)                        78%

Land and Rights                                             2,118,819                      773,297               1,345,522                         36%

TOTAL                                                  1,000,000,000               934,729,959                 (65,270,041)                        93%


               Capital Works and Capital Projects
               During the year under review, Rand Water’s actual                         Mnandi and other growth areas between Midrand and
               capital expenditure in the augmentation and rehabilitation                Pretoria, and it will also extend the regional bulk supply
               of infrastructure and assets amounted to R934,7 million.                  to areas around the Hartbeespoort Dam. Installation of
               Of this, R887,6 million was for infrastructure under                      the first portions of the scheme (H33, H34 pipelines)
               Independent Capital Projects; and R46,3 million for                       is complete, and it is already assisting with supply to
               moveable assets and R0,8 million for land and rights.                     the Diepsloot supply zone for Joburg Water. The system
               The overall expenditure was R934,7 million against an                     extension along a new route towards Hartbeespoort Dam
               overall budget of R1000 million, equalling 93-percent of                  (H35 pipeline) is currently in progress.
               the capital expenditure.
                                                                                         Vlakfontein Reservoir to Mamelodi
               The value of approved work to 30 June 2010 under                          pipeline augmentation
               the Independent Capital Projects budget amounted to                       This project strengthens an existing route, supplying
               R5 585 million of which the outstanding value of                          under gravity from Vlakfontein Reservoir, north of Benoni,
               approved work in progress amounts to R1,897 million.                      through to eastern and central areas of the Tshwane
                                                                                         Metropolitan Municipality. In addition to growth in
               The work includes numerous projects necessary to                          existing areas of supply, the pipeline supports supply to
               ensure that Rand Water is able to meet the needs of                       an extended area of service, including the Mpumalanga
               its consumers throughout its area of supply in the most                   Western Highveld Region.
               efficient and cost effective manner. Overall, these projects
               range in value from R200 000 to over R600 million.                        The installation of the first leg, a 1500 mm diameter
                                                                                         pipeline from the Vlakfontein Reservoir to the Rietvlei
               Major Capital Projects                                                    Nature Reserve, south-east of Pretoria, is in progress. This
                                                                                         leg supplies growth along the route, and terminates at the
               Rand Water embarked on capital expenditure on
                                                                                         point of supply to the major Garsfontein Reservoir zone
               more than 300 projects during the year under review.
                                                                                         at the Tshwane Metropolitan Municipality. The extension
               However, the top five projects accounted for more than
                                                                                         to the Mamelodi termination is at present in the planning
               one third of total capital expenditure. These five projects
                                                                                         phase, and will be informed by growth in demand from
               involve augmentation, upgrading and extension of
                                                                                         areas in the east of Tshwane, as well as in the expanded
               pipeline routes, emphasising the importance and value
                                                                                         area of service.
               of pipelines, as a proportion of Rand Water’s total
               infrastructure.
                                                                                         BG3 raw water pipeline augmentation
                                                                                         This 3500 mm diameter pipeline increases the capacity
               Brakfontein to Hartbeespoort Dam Scheme
                                                                                         of the system supplying raw water under gravity from the
               This project will initially strengthen the supply to Diepsloot
                                                                                         Vaal Dam to the Zuikerbosch Purification and pumping
               and environs. Subsequent stages will include supply for


Rand Water Sustainability Report 2009–2010                              30
Station. The pipeline runs parallel to Rand Water’s            Weltevredenpark 100Ml Reservoir – northwest
existing 3500 mm diameter BG2 pipeline. Fabrication            of Johannesburg
of the new pipeline has commenced, and installation is         This R130 million project is underway and is expected
scheduled for completion by 2012. The new pipeline             to be complete during the 2009/10 financial year.
will be laid between the BG2 and the Vaal River. A             The construction of the reservoir, inlet structure and site
large portion of the excavation is in rock, which requires     pipework is complete, waterproofing, sterilisation and
blasting, close to the existing line. Sections of the line     testing are to follow. Commissioning and handing over is
are also close to the river bank, which will necessitate       expected during 2010.
continuous pumping to remove water from the trench.
Installing such a large pipeline under these conditions        Installation of Cathodic Protection System on the
will be a huge engineering feat, and careful planning,         Rand Water pipeline network
monitoring and control will be needed.                         The Rand Water pipeline network is exposed to corrosion
                                                               from stray water current sources, corrosive soils, and
H14 Lyttelton to Rosslyn pipeline: partial deviation           microbiological corrosion, this can result in metal loss and
and augmentation                                               potentially threaten the integrity of the pipeline network. It
A portion of Rand Water’s pipeline network runs over           is therefore necessary that corrosion mitigation measures
dolomite ground conditions, which can affect the               be in place for the prevention of corrosion.
infrastructure mainly due to the formation of sink holes. In
a worst case scenario, such as that which occurs along         The implementation of Carthodic Protection (CP) System is
the eastern portion of the H14 pipeline, sinkhole activity     per the geographical regions of the pipeline network and
can force the relocation of affected pipelines.                the pumping stations. Cathodic Protection and Corrosive
                                                               surveys have been completed throughout the entire Rand
The H14 pipeline is part of a system that supplies             Water pipeline network as well as the pumping stations.
municipal reservoirs in central Pretoria. The eastern          The Installation of CP at Zwartkopjes, Zuikerbosch and
portion of the line is being rerouted and increased in         Vereeniging and in the regions is in progress, and the
capacity. It will run closer to the municipal reservoirs,      anticipated completion date for the entire Rand Water
allowing portions of the municipal pipework, also              network is scheduled for 2014.
affected by the dolomitic activity, to be decommissioned.


Upgrade of N7, N8 pipelines from Secunda to Bethal             Other Projects being undertaken
This eastward leg of Rand Water’s infrastructure runs into
Mpumalanga Province. The portion from Secunda to the
                                                               Raw Water Supply
termination at Bethal was acquired from the municipality,
and contains small diameter asbestos cement pipes.             The current raw water supply pipelines to both
These are being replaced with steel pipes to increase          Zuikerbosch and Vereeniging stations do not have
capacity and improve their reliability.                        sufficient capacity to meet 2015 demands, and the
                                                               following projects are proposed to meet system demands
An interesting feature is that much of the pipeline is         to 2025:
recovered from elsewhere in the network, having
become too small for the current need. This occurs             •    Duplication of the Vaal Dam – Zoekfontein raw water
when the pipeline is still in an acceptable condition; it           pipeline (9 km x 3500 mm diameter)
is then refurbished and can be used in a relatively low
capacity part of the network, at a substantial savings in      •    Duplication of the Lethabo – Vereeniging raw water
comparison to the purchase of a new pipeline.                       pipeline (14 km x 2500 mm diameter)




                                                                   31                     Rand Water Sustainability Report 2009–2010
Infrastructure and the Approach to the Management of Strategic Assets (continued)


            Implementation of System 5 at Zuikerbosch                     •   Duplication of the Kwaggaspoort - Gomsand pipeline
            Pumping Station                                                   route (10 km x 1000 mm diameter)
            In order to meet projected 2025 peak demands,
            construction of a new purification and pumping system         Augmentation of the Mapleton supply system
            with a design capacity of 1200 Ml/d is proposed.              The Mapleton pumping station zone currently constitutes
            The first phase should provide not less than 600 Ml/d         about one sixth of total Rand Water demand, and this
            available capacity, which will be sufficient to meet          demand is projected to grow by 300 Ml/d between
            projected 2020 peak demands. The following main               2015 and 2030. The following projects are intended to
            components are required:                                      cater for system demand to 2030:
            •          Site and services
            •          Raw water supply                                   •   Installation of additional capacity at Mapleton
            •          Sedimentation system                                   pumping station (2 x 200 Ml/d pumpsets)
            •          Dosing systems
            •          Filtration system                                  •   Installation of remainder of the Mapleton – Rynfield
            •          Engine room and associated works                       pipeline (16 km x 1800 mm diameter)
            •          Power supply
            •          Instrumentation and supervisory systems            •   Augmentation of the Vlakfontein – Mamelodi pipeline
                                                                              system (34 km x 1500 mm diameter)
            We continue to engage with the Department of Water
            Affairs and Environment on these matters and have             •   Augmentation of the Van Dyk’s Park – Brakpan
            provided our input into the national strategy that is being       pipeline route (8 km x 1400 mm diameter)
            implemented to ensure sustainable water supply.
                                                                          Renovation and
            Augmentation of the Palmiet supply system                     replacement projects
            The Palmiet pumping station zone currently constitutes
            about one third of total Rand Water demand, and has
                                                                          Upgrade of purification systems at Zuikerbosch
            the highest projected demand growth of the four main
                                                                          pumping station
            booster pumping station zones – some 600 Ml/d
            increase between 2015 and 2030. The following                 Much of the purification plant at the river stations has
            projects are intended to cater for system demand              been in operation for many decades, and actual
            to 2030.                                                      outputs have been reduced below design figures in
                                                                          order to meet current standards for quality, health
            •   Augmentation of the Zuikerbosch – Palmiet pipeline        and safety. Downtime for maintenance and cleaning
                route (45 km x 2300 mm diameter)                          has also increased. Projects are planned to replace
                                                                          or supplement capacity to return systems to design
            •   Construction of Engine Room 3b at Palmiet pumping         capacities:
                station (4 x 200 Ml/d pumpsets)
                                                                          Systems 1 and 2: Installation of a 250 Ml/d filter block
            •   Partial augmentation of the Palmiet – Klipfontein         to replace filter block 2b, and 200 Ml/d sedimentation
                pipeline system (18 km x 2100 mm diameter, 6 km x         tanks to improve quality, augment and add standby
                1800 mm diameter)                                         capacity.


            •   Augmentation of the Klipfontein – Brakfontein pipeline    Systems 3: Installation of a 400 Ml/d sedimentation
                route (14 km x 1700 mm diameter)                          tanks to replace older systems, augment and increase
                                                                          standby capacity.



Rand Water Sustainability Report 2009–2010                          32
Systems 4: Installation of a 250 Ml/d filters block and             70 people from the local communities with intensive
400 Ml/d sedimentation tanks to augment and provide                 training and development plans for capacity building;
standby capacity.
                                                               •    Buy-in, commitment and support from estate owners
Hartbeespoort Dam Biological Remediation                            around the dam regarding the intiative of the
Programme (Harties Metsi a Me)                                      programme;

Rand Water was appointed as the Implementing Agent
for the Hartbeespoort Dam Biological Remediation
                                                               •    Development of training material;

Programme by the Department of Water Affairs and
Environment in June 2006 to address and remediate the
                                                               •    Communication and awareness creation to various
                                                                    stakeholder groups including schools;
dam from its current hypertrophic status.


The following has been achieved through the
                                                               •    Establishment of a Steering Committee with a
                                                                    documented plans for transformation into an
programme to date:
                                                                    Intergovernmental Forum;
•   Development of a 100% biological remediation
    plan for the restoration of water quality. Absolutely
    no chemicals are utilised. This is the first of its kind
                                                               •    Development of a comprehensive Resource
                                                                    Management Plan (RMP) document after intensive
    in the country if not in Africa to adopt a integrated
                                                                    public participation and involvement which
    biological approach to address water quality issues;
                                                                    will specify the rules and restrictions related to
                                                                    the management of the water body as well as
•   Pioneering of an inland waters buoy marker
                                                                    provide direction on the establishment of a Water
    system which has been adopted by SAMSA for
                                                                    Management Institute.
    implementation to all inland water bodies;

                                                               The project is funded by the DWAE with a total value of
•   Development of floating islands to compensate for
                                                               R93 million to date. It is envisaged that the programme
    areas where riparian vegetation rehabilitation is not
                                                               will eventually be handed over to a Water Management
    an option;
                                                               Institute, one of the outcomes of a comprehensive
                                                               Resource Management Plan development process, which
•   Implementation of foodweb restructuring is the first of
                                                               will continue the efforts currently being undertaken by the
    such an initiative in the country. 68 tonnes of coarse
                                                               Metsi a Me Programme.
    fish (carp and catfish) already removed;

                                                               Research and Development Projects
•   Physical removal of biomass (algae and hyacinth)
    from the dam water surface. To date 15 922 m3              Rand Water’s focus is in three main areas, being:
    of algae, 26 894 m3 of hyacinth and 752 m3 of              •    the development of Intellectual Property guidelines
    debris have been removed from the dam;                          and policies;


•   All ‘waste’ material is recycled and reused for            •    the co-ordination of internal and external research
    beneficial purposes, therefore no waste is generated            work; and
    by the programme;
                                                               •    the development and application of new processes
•   Development and implementation of Integrated Water              and materials for pipelines.
    Use Licenses for housing estates around dam;
                                                               Pipelines account for the major part of Rand Water’s
•   Sustainable employment has been created for over           capital budget expenditure.


                                                                   33                      Rand Water Sustainability Report 2009–2010
Infrastructure and the Approach to the Management of Strategic Assets (continued)


            Examples from each of these three areas are as follows:          One project which was funded by the Water
            •   A multidisciplinary team drafted an Intellectual             Research Commission (WRC) involves the use of
                Property Policy document that has been approved              grouted polyethylene liners to seal leaks in old steel
                by the Board. This work needs to be extended by              pipelines. This project will be extended with the
                mapping and assessing Rand Water’s intangible                building of a test facility at the University of Pretoria.
                assets.
                                                                         •   The new 3.5m diameter Vaal Dam – Zoekfontein
            •   Research and development is undertaken directly by           pipeline has been designed using the findings from
                Rand Water as well as by using external agencies             the research work conducted at Brakfontein Reservoir
                such as universities, the Water Research Commission          in 2001 for the proposed Clarens – Johannesburg
                (WRC), and suitably qualified consultants and                pipeline. It has been possible to reduce the wall
                contractors. Rand Water also funds two Chairs                thickness from 11.5mm to 10mm resulting in a saving
                of Water Utilisation, one at the University of               of about R10 million in steel pipe supply.
                Johannesburg, the other at the Tshwane University of
                Technology. Both these Chairs at one stage resided       •   New planned pipeline research and development
                at the universities of the Witwatersrand and Pretoria,       projects include the comparable testing of discrete
                and Rand Water continues to retain on-going projects         and continuous anodes for Cathodic protection of
                with both of these universities.                             steel pipelines, the Cathodic shielding of coating
                                                                             defects by different types of pipe bedding bond
            •   Typical pipeline related projects are those                  breakers, and the testing of prototype power sources
                dealing with leaks, friction factors, bio-films,             for pipeline flow meters.
                detection of air pockets, performance of epoxy
                and polyurethane linings, in-line filters for bitumen    •   Evaluation and testing of pipeline lining and coating
                particles etc. Unfortunately this work is dependent          materials including those for protection of field joints
                upon suitable staff or students and will need to             is on-going. This is done through laboratory testing
                be co-ordinated more effectively. Rand Water                 and the installation of trial sections of pipeline where
                requires an organisational home and custodian                performance can be monitored over several years.
                for technical research and development and this is
                being considered in the thrust for growth, operational   Development of additional water sources
                integrity, and best-fit technology.
                                                                         Rand Water is aware of the concern that exists around
                                                                         the adequacy of sustainable water supply in Gauteng
            •   The pipeline renovation programme is generating a
                                                                         and its environs and to this end, it continues to engage
                continuous need for research and development with
                                                                         with the DWAE with respect to the development of new
                innovative methods of evaluating pipeline condition
                                                                         and alternative water sources. Plans are being mooted at
                and advanced techniques and materials are being
                                                                         a government level to address these concerns.
                used to repair or replace the old pipelines.




Rand Water Sustainability Report 2009–2010                          34
Environmental Impact of Operations
Impact on Wetlands                                            International and South African experience has however
                                                              shown that it is possible to recover some of the health and
Wetlands – both natural and constructed - are able to
                                                              values of degraded wetlands. To this end, Rand Water has
purify water because of their ability to filter suspended
                                                              embarked on programmes to rehabilitate wetlands and to
solids, to degrade organic substances and to take up
                                                              educate people on their importance and the critical role
nutrients from the water. Wetlands also perform vital
                                                              that they play in the water management cycle.
functions in the water cycle and are important for flood
management, climate and promotion of ecological
                                                              Environmental Authorisations and Reinstatement
biodiversity.
                                                              In order for Rand Water to ensure its compliance with
The ecological significance of wetlands increases due to      the appropriate legislation, it is essential for various
the fact that the wetness associated with these habitats      studies, public participation processes and plans be
exercises a major influence on the species composition of     undertaken to allow for the necessary approvals to be
wetland biota. Consequently, many animals are wholly          granted by authorities. With ever increasing urbanisation,
or partially dependent on wetlands for refuge, feeding        the need for more infrastructures to service the demand
and breeding purposes.                                        for water continues to increase. The 3 300km of Rand
                                                              Water pipeline infrastructure in servitudes and related
Studies on wetlands tend to agree that they provide           infrastructure become even more prominent as open
many water-quality benefits. Wetlands are the areas           green belts. These servitudes are vulnerable to the impact
that first receive and impede drainage runoff from            of storm water, human and animal traffic, making them
developed lands. They are also the areas where                susceptible to erosion and other negative environmental
shallow groundwater seeps into surface waters. Riparian       aspects which can potentially damage pipelines. The
vegetation traps sediment, removing harmful amounts           pipelines have become exposed as a result of soil
of nitrates - nitrogen, phosphorus, and pesticides before     erosion, resulting in a reduced life span from the normal
they can enter streams. For all these reasons, there should   65 years as rust thins the pipes. Pipe bursts in themselves,
be a strong effort to maintain or restore wet buffers that    can result in huge environmental damage on a large
have vegetation cover in areas that are adjacent to           scale, costing large amounts to rectify.
streams.
                                                              Environmental Authorisations (EA) are essential for a variety
The studies estimate that up to 60% of the wetlands have      of projects ranging from the maintenance of existing
been damaged due to human impact. South Africa has            pipelines to the construction of new, and the demolishing
115 000 wetlands, covering over 4 million hectares            of old infrastructure. These projects are audited by
and comprising close to 4% of the country’s total surface     Environmental Control Officers employed by Rand Water,
area. Many of South Africa’s wetlands have been lost          with external audits being conducted by independent
because of agriculture, timber plantations, mining and        Environmental Assessment Practitioners. Compliance
urban development.                                            is important to Rand Water, as non-compliance can
                                                              potentially affect the Organisation negatively in the form
Many wetlands in South Africa are likely to be affected       of fines, or the withholding of further authorisations, and
by the changes in temperature and rainfall brought            thereby preventing any further development.
about by climate change. Higher water temperatures
and extreme events like floods and droughts have              During the year under review, Rand Water has been
been projected to decrease water quality and increase         involved in 66 of these projects. Of the projects,
erosion in many of the wetlands. This degradation due to      44 are in the process of obtaining authorisation,
droughts is illustrated by the recent continued burning of    while 16 projects are being monitored for compliance.
the Bodibe wetlands in the North West province.               Rand Water has also been directly involved with
                                                              10 rehabilitation projects with current authorisation.


                                                                35                       Rand Water Sustainability Report 2009–2010
Environmental Impact of Operations (continued)


            In addition to the 66, an additional 15 other projects         During the year under review, the University of South
            have required Water Use Licenses (WULA) in terms of            Africa (UNISA) undertook a study and finalised the
            National Water Act 36 of 1998, and two projects                first phase of identifying all listed Alien Invader Plants
            required Heritage permits in term of the National              at selected Rand Water sites. This information was
            Heritage Act. These are still in progress.                     incorporated into site invader removal programs and
                                                                           implemented with emphasis on Category 1 invaders.
            Rand Water monitors and rehabilitates erosion that
            occurs over, and adjacent to pipelines. During the             At Zwartkopjes 1 000m2 of Category 1 invaders were
            year under review, investigations by the Rand Water            removed, and 22 500m2 of Category 2 invaders were
            Environmental Management Services Rehabilitation Unit          controlled to prevent spreading. A second phase has
            observed that additional 16 eroded areas that required         been implemented to take this programme to the other
            intervention. This brings the total number of erosion          Rand Water sites to be able to further comply with
            incidents that have been addressed and these still require     legislation. Another study currently underway by UNISA,
            rehabilitation to 11. During the 2009/2010 year, Rand          is investigating the various methods of maintaining
            Water conducted 20 erosion interventions on pipelines          veld grass areas on sites that will reduce maintenance
            and other infrastructure with a total footprint of 28 927m2    costs and ensure reduced erosion whilst maintaining
            of rehabilitation.                                             biodiversity.


            Site Maintenance                                               The Rand Water nursery was also upgraded to
                                                                           accommodate and assist the Rand Water Rehabilitation
            During the year under review, EMS’s site
                                                                           Teams with the storage and protection of rescued plants
            maintenance department maintained landscapes
                                                                           to comply with Environmental Management Plans. A total
            totalling 6 404 504m2. Rand Water’s main sites,
                                                                           of 1 106 plants of nine species were rescued from these
            i.e: Rietvlei, Zuikerbosch, Central Depot, Vereeniging,
                                                                           sites and are being stored at the nursery until the projects
            Zwartkopjes as well as Eikenhof, Palmiet and Mapleton
                                                                           require them for rehabilitation.
            were zoned into various maintenance areas. The zone
            classification used was standardised across all sites,
                                                                           Personnel employed for education and training
            according to set criteria such as land use, maintenance
            frequencies, type of horticultural equipment required and      The Water Wise Education Team (16 permanent and
            land gradient. The various zone classifications include        contract staff at 4 bases in Rand Water service area) has
            amongst others focal areas, embankments, veld grass,           made significant progress this financial year through their
            park lands and sports fields.                                  Water Wise activities and education material. They have
                                                                           attained a record high in terms of their attendance figures
            The intention of this exercise was to create uniformity        (table 11) and the quality of their workshops continues
            of site maintenance and to ensure that the correct             to remain of a high standard (table 12). As the public’s
            horticultural equipment was allocated and used at the          awareness of environmental issues increases, the team
            identified areas. All the major Rand Water site entrances      continues to provide workshops and education material
            were revamped and upgraded, with Water Wise                    that addresses current environmental issues that relate to
            principles used as a design criteria in all the upgrades of    water. The team ensures that they are knowledgeable
            these landscapes.                                              about these issues so that they can continue to educate
                                                                           learners and the general public and assist in increasing
            The entrance to the Rand Water Head Office received            awareness about conserving our most precious natural
            special attention with the installation of a new water         resource, water. The team will continue to score with
            feature and upgrades to the surrounding indigenous             learners and educators and spread the Water Wise
            landscape. Part of this site upgrade included the              message! KE NAKO (WE CAN)!
            installation of new information boards along walkways.


Rand Water Sustainability Report 2009–2010                            36
Table 11: The number of learners and educators that attended workshops, road shows & exhibitions from July 2000 to
June 2010


                             2000/      2001/     2002/        2003/    2004/      2005/     2006/      2007/     2008/      2009/
                             2001       2002      2003         2004     2005       2006      2007       2008      2009       2010
 No. of Workshops, Road
                               190       250       227           274     293        337       359        408        589         587
 Shows & Exhibitions
 No. of Learners             12071      15744     14422        18792    19636     18585      20360     36050      57650      67620
 No. of Educators              825      1127        888          765     975       1199       1228      2080       1699      1853
 No. of Adults                                                                                                     1136      1327
 TOTAL                       12896      16871     15310        19557    20611     19784      24464     38130      60485      70800


Table 12: The quality of the education service as                      All training courses are outcomes-based and the content
assessed by educators                                                  is unit-standardised. This approach ensures alignment
                                                                       with competencies and qualifications as set out by the
 Standard of Service measured by educators         Overall             National Qualifications Framework (NQF) and is the
 through the use of an Evaluation Form             Service
                                                                       reason why courses and modules are recognised by the
 according to financial years:
                                                                       South African Qualifications Authority (SAQA). In fact,
 July 2003 – June 2004                             91.95%
                                                                       this section has been accredited by the Energy Sector
 July 2004 – June 2005                             93.2%
                                                                       Education Training Authority (ESETA) as a proper training
 July 2005 – June 2006                             93.28%
                                                                       centre. The training facility, which can accommodate
 July 2006 – June 2007                             95.16%
                                                                       about 30 trainees, is state-of-the-art, equipped with
 July 2007 – June 2008                             93.57%              wireless technology and video conferencing facilities.
 July 2008 – June 2009                             96.07%

 July 2009 – June 2010                             95.27%              In line with the development and supply of a continuous
                                                                       pipeline of skilled scientists, the Water Technology
                                                                       Training unit is preparing for the second intake of
The Water Technology
                                                                       graduates who will be contracted into Rand Water’s
Training Section                                                       Scientific Services Division over two years. The first
Rand Water believes that every individual should be                    graduate development program was initiated in 2009
offered the opportunity to improve themselves through                  and is preparing a retention program to retain a
training, the Water Technology Training section focuses                percentage of graduates within the organisation. This
on people development. This unit identifies skills gaps                program is due to end in March 2011.
within Rand Water’s Scientific Services Division. It focuses
on those skills which need to be met through technical                 Research and development
training, in order to ensure the continued sustainability of
                                                                       The core objective of the Process Technology Department
the Division and organisation
                                                                       is to optimise treatment processes at Rand Water in
                                                                       order to facilitate the production of the best quality
This section identifies skills gaps within the division and
                                                                       water at the least cost. This entails the identification
focuses on those which need to be met through technical
                                                                       and implementation of the best available technology
training in order to ensure the continued sustainability of
                                                                       in combination with the most advantageous treatment
the division and organisation at large. Due to its nature,
                                                                       regime.
Scientific Services specifically aims to strengthen scientific
and technical skills.
                                                                       In 2009/10, Process Technology undertook a number of
                                                                       diverse projects relating to internal process optimisation



                                                                         37                       Rand Water Sustainability Report 2009–2010
Environmental Impact of Operations (continued)


            and addressed a range of external technical queries              Rand Water’s energy consumption is in the order of
            pertaining to water treatment and quality. The latter            200 MW and the 16 MW would translate into an
            reflected the general interest trends in the water sector        8 percent energy efficiency improvement for Rand
            this past year, which mainly revolved around the topical         Water. Should the implementation of these projects be
            issue of water re-use. This included the feasibility of mine     successful, other sites will also be developed.
            water desalination and the reclamation of grey water.
                                                                             Global warming poses a serious threat to our planet
            As part of its mission to remain conversant with the best        and is caused by the emission of environmentally
            available technology, the Department evaluated several           unfriendly gas such as carbon dioxide. An Eskom coal
            alternatives relating to conventional water treatment.           fired power station emits approximately 0,958 tons of
            Some of the significant assessments included alternative         carbon dioxide to generate one Megawatt-hour (MWh)
            filter media, products for remediation of existing filter        of energy (Source: Eskom’s 2007 Annual Report www.
            media, biopolymers for both coagulation and disinfection         eskom.co.za). Rand Water has an environmental
            purposes, activated zeolite, portable chlorine generators        obligation due to its large carbon footprint resulting from
            and several disinfectants. Trends in the latter included         energy consumption through pumping. The generation
            both chlorine and non-chlorine based disinfectants, with         of hydropower will contribute to the reduction of carbon
            a marked rise in the promotion of metal based products           dioxide emissions as it is a clean energy source.
            such as stabilised copper and silver solutions.                  The generation of 16 MW will result in an effective
                                                                             reduction of approximately 16 ton of carbon dioxide
            Energy used – initiative to save energy or use                   every hour (11 520 ton/month or 140 160 ton/
            alternative renewable energy sources                             annum). In addition 0,550 ton of coal and 1,35 kl of
                                                                             water is consumed by Eskom per MWh. 16 MW will
            Rand Water can harness hydraulic energy at various
                                                                             therefore result in an effective reduction of approximately
            points in its network to generate electricity. This energy is
                                                                             8,8 ton less coal consumed every hour (77 088 ton/
            not used at present. This electricity can either be sold or
                                                                             annum) and 21,6 kl less water consumed every hour
            can be wheeled through the distribution network to any
                                                                             (189 216 kl/annum). This would be an extremely
            Rand Water site as a saving. Four sites are earmarked
                                                                             important accolade to add to Rand Water’s other water
            to start off with for hydropower generation with a total
                                                                             and environmental accolades.
            capacity in the order of 16 Megawatts (MW).




Rand Water Sustainability Report 2009–2010                              38
Environmental Rehabilitation Projects
Waste Treatment

Rand Water has a mandate to contribute to the millennium         maintenance, human resources, asset management,
development goals of ensuring access to water and                budgeting) are outlined in addressing those particular
sanitation facilities both of which will ultimately contribute   challenges or shortfalls at the plants. Rand Water, as an
to the alleviation of poverty. Rand Water also seeks to          organ of State is mandated, in terms of Section 80 of
address the protection of scarce water resources through:        Water Services Act 108 of 1997, to enter into public
                                                                 partnership with municipalities in terms of Municipal
•   The management, operation and maintenance of                 System Act 32 of 2000 to address issues of services
    wastewater treatment plants to improve raw water             delivery.
    quality and its operational cost
                                                                 To date, the key projects undertaken to address issues on
•   Development, testing and deployment of cost-effective        water matters and particularly the treatment of wastewater
    wastewater technologies.                                     and Acid Mine Drainage (AMD) are as follows:


Rand Water’s approach with respect to the management             Emfuleni Local Municipality
of waste water is therefore to conduct assessments               The water quality in the Vaal River (which is one of
on the status of the wastewater treatment works on               Rand Water’s abstraction points) had been deteriorating
its area of supply and beyond. Detailed reports of               for a number of years due to the discharge of effluent.
condition assessments of the wastewater treatment                To address this issue, Rand Water has taken the
works are submitted to the Water Services Authorities            initiative to enter into 5 year partnership with Emfuleni
(Municipalities) and recommendations (such as operation,         Local Municipality to assist in addressing some of the


 Rietspruit Waste Water Treatment Works




                                                                   39                      Rand Water Sustainability Report 2009–2010
Environmental Rehabilitation Projects (continued)


              Tweefontein Waste Water Treatment Works




            challenges that they were faced with in respect of their      Thembisile Hani Local Municipality
            wastewater treatment works. In order to meet the effluent     Lack of resources, shortage of skills and an ageing
            discharge standards as set by Department of Water             infrastructure have all been identified as leading
            Affairs and Environment, Rand Water is assisting the          contributors to the inability of many local municipalities
            municipality with operations, maintenance and capacity        to deliver services and improve on the sanitation.
            building at three wastewater treatment works and 52           The result has been an inability by municipalities to
            pump stations. Furthermore, bio-monitoring programme          operate their sewage treatment facilities to meet Green
            and Industrial Effluent Monitoring Programme (IEMP)           Drop Certification. Rand Water also currently assisting
            were implemented where industries are categorised and         Thembisile Hani Local Municipality with operation and
            billed appropriately for the discharge of effluent into the   maintenance of its wastewater treatment plant to meet
            municipal sewer networks.                                     legal requirements.


              Refurbished Brugspruit AMD Plant




Rand Water Sustainability Report 2009–2010                         40
Brugspruit Pollution Control Plant                                    The water pollution as a consequence of the inadequate
Brugspruit Pollution Control Plant is 10 Ml/day Acid                  functioning of the Works, has necessitated that Rand
Mine Drainage (AMD) plant situated in Witbank that                    Water expedites the project by treating it as a priority
treats acid mine emanating from old mines in Ferrobank.               with regards to the following:
The continuous pollution caused by the plant and the
malfunctioning collection systems resulted in DWAE                    •    The un-blocking and cleaning of the two blocked
appointing Rand Water to refurbish and commission the                      collector wastes system that should have been
Brugspruit Water Pollution Control Plant in September                      bringing effluent to the plant
2008. The work, which is still in progress, includes
replacement of all electrical and mechanical equipment,               •    The temporary neutralisation of acid mine water at
civil structures, and bringing the plant to full operation.                the holding ponds, while the reinstatement of the
                                                                           plant was being undertaken


Table 13: Below is the list of Rand Water Bulk Sanitation projects undertaken during the 2009/2010 financial year:


  No      Year                     Description Of Work                         Contract Value               Duration Of The Project

   1      2009     Refurbishment of Brugspruit Acid Mine Drainage
                                                                                R11 million                        2 Years
                   Plant

   2      2009     Refurbishment of Tweefontein Wastewater
                                                                                R1.0 million                        1 Year
                   Treatment Works

   3      2009     Operation & Maintenance of Tweefontein
                                                                                R6.0 million                       5 Years
                   Wastewater Treatment Works

   4      2009     Operation & Maintenance of Emfuleni Wastewater
                                                                                R72 million                        5 Years
                   Treatment Works

   5      2009     Design Construction of the Rietspruit Clarifer,
                                                                                R8.7 million                        1 Year
                   Contact Chamber & Drying beds

   6      2009     Refurbishment of Moqhaka Wastewater Treatment
                                                                                R5.1 million                        1 Year
                   Works

   7      2009     Refurbishment of Emalahleni Pump stations                    R5.7 million                        1 Year
   8      2009     Operation & Maintenance of Victor Khanye
                                                                                 R318 000                         3 Months
                   Wastewater Treatment Works

   9      2009     Sludge Handling at Dipaleseng Local Municipality              R290 000                          1 Month




                                                                          41                     Rand Water Sustainability Report 2009–2010
Environmental Rehabilitation Projects (continued)


            Emissions, Effluent and Waste                                  Effluent and Waste

                                                                           The discharge of untreated waste and substandard
            Emissions                                                      effluent into municipal sewer systems has detrimental
                                                                           impact on the physical and the biological treatment of
            Most of the sewage treatment works in South Africa do
                                                                           certain chemicals in the wastewater treatment works. This
            not have emission control mechanisms. Gases such as
                                                                           eventually results in discharge of substandard effluent into
            methane, carbon dioxide and Hydrogen sulphide are
                                                                           the rivers and exasperates the aquatic life in the receiving
            emitted to the atmosphere from anaerobic digestion of
                                                                           waters.
            the wastewater treatment works and this has an adverse
            impact on environment and contributes towards the
                                                                           Poorly pre-treated industrial effluent and pig-sty wastes
            creation of greenhouse gases and acid rain. Collection
                                                                           discharged into the sewage treatment works contain
            of methane gas can be beneficial not only from the
                                                                           some protozoa such as cryptosporidium that resist
            perspective of avoidance of damage to the environment
                                                                           disinfection and cannot be effectively treated or removed
            but can also be used in the co-generation of electricity
                                                                           by conventional wastewater treatment processes.
            and reduction of operation costs at the wastewater
            treatment plants.
                                                                           Rand Water always ensures that where its assist required
                                                                           in terms of above, proper Industrial Effluent Monitoring
            While Rand Water does not own wastewater treatment
                                                                           Programme is conducted and Green Drop Certification
            works itself, it has, on the recent projects undertaken,
                                                                           is adhered to all the times to prevent pollution to the
            urged municipalities to refurbish sludge handling facilities
                                                                           environment.
            in order to collect methane gas for the generation of
            electricity or, where the municipality is unable to use it
            in this manner, to burn it before being releasing into the
            atmosphere.




Rand Water Sustainability Report 2009–2010                          42
Information Communication Technology
During the year under review, Rand Water achieved          Information Technology Applications Disaster
a 98.8-percent availability of its core Information        Recovery
Communication Technology infrastructure; and further
                                                           An applications disaster recovery plan and site exist
improvements are already in place to improve this to
                                                           for all business critical non-industrial systems. The
99.9-percent within the next two years.
                                                           disaster recovery plan and site were compiled and
                                                           established based on agreed business requirements and
The server virtualisation and consolidation is already
                                                           priorities. The solution therefore satisfies the business
in progress as part of a larger Green Information
                                                           recovery requirements and is cost effective. Backups are
Technology (IT) strategy for the organisation. Rand
                                                           performed on a daily basis and are stored off site. The
Water’s current IT governance framework will be
                                                           recovery time of the individual systems range from one
replaced during the next financial year with a King
                                                           day to one week. The maximum age of the recovered
III compliant IT governance framework that will be
                                                           and restored data in the event of a disaster will be twenty
integrated into the corporate governance framework.
                                                           four hours. The disaster recovery plan is tested at least
                                                           twice a year and the tests include both IT and system
Any risk to Rand Water due to IT failure and information
                                                           owner involvement and approval.
management was significantly reduced over the last
two years. The position of the IT related risk on Rand
                                                           Information Technology Infrastructure
Water’s Residual Risk Register has moved from 8 to 16.
This was principally due to improvements and additional    A wide area network with adequate redundancy has
mitigation measures implemented during the financial       been implemented between the major Rand Water
year, including, but not limited to, the implementation    sites and it ensures an availability of 98-percent for
of adequate network redundancy on the wide area            data, voice and telemetry network traffic. A server and
network using wireless technology; the improvement of      storage architecture and standard that contain adequate
the integration between systems based on a middleware      redundancy built into the server and storage devices to
mechanism; obtaining ISO 9001 certification for the        ensure an availability of 98-percent. All non-industrial
IT function; and an IT security review conducted by the    systems were centralised into a corporate data centre
National Intelligence Agency.                              to improve the controls around the systems and related
                                                           infrastructure components. Further improvements will be
                                                           selected and implemented during the next four years to
                                                           improve the availability to 99.9-percent.




                                                             43                       Rand Water Sustainability Report 2009–2010
Strategic Human Capital
                  Rand Water’s focus has been and continues to be on                            •   Re-engineering
                  providing opportunities to both existing employees and                        •   Re-organisation of functions
                  the communities which it serves. A key focus of the
                  Organisation has been the creation of initiatives that                        Some of the initiatives that have been successfully
                  build capacity and address the needs of the individuals                       implemented are as follows:
                  concerned, the community as well as addressing Rand
                  Water’s skills requirements into the future. This culminated                  Legislated Training
                  in the establishment of the Organisational Development
                                                                                                Legislation requires that Rand Water ensure that training
                  and Design (ODD) department which is housed within
                                                                                                is conducted for employees undertaking specific
                  the Strategic Human Capital Portfolio. The rationale for
                                                                                                activities which include performing work or operating
                  the introduction of this component was to enable the
                                                                                                equipment for business operations. It is for this reason
                  implementation of the new Strategy of Rand Water.
                                                                                                that Rand Water has a service of training programmes
                                                                                                that responded to compliance with relevant legislation
                  The following are some of the key objectives that ODD
                                                                                                and associated business needs. Legislated training was
                  has to enable the business with:
                                                                                                prioritised and targets defined as per business needs.
                  •    Transformation and Change Management
                                                                                                The table below indicates completed legislated training
                  •    Organisation Design
                                                                                                per occupational category for the period under review.
                  •    Culture Change
                  •    Driving Business Efficiencies and Effectiveness
                                                                                                Targeted Courses

                  To enable the achievement of these key business
                                                                                                •   SHERQ

                  objectives, ODD has identified strategic initiatives
                                                                                                •   Lifting equipment

                  which will be delivered through a structured program
                                                                                                •   Protective Services

                  and in order of priority to the business through an
                                                                                                •   ISO related

                  integrated delivery model in partnership with the Talent
                                                                                                •   Incident investigation

                  Management department.
                                                                                                •   Procedure and observation
                                                                                                •   Environmental awareness

                  For this purpose, the Program Management Office was
                                                                                                •   National Key Point

                  established to create capacity in delivering on these
                                                                                                •   Fire Fighting

                  initiatives through the following work streams:
                                                                                                •   First Aid
                                                                                                •   High Voltage Switching
                  •    Business Case for Change (Business Modelling)
                                                                                                •   Access to Motorised Areas
                  •    Leadership Modelling
                                                                                                •   Confined Spaces
                  •    Transformation and Change

Table 14: 2009/2010 Completed Training per Occupational Category.


Sum of headcount                           Gender     Race
                                                                                           Female                                                   Male     Grand
                                                     Female                                          Male
                                                                                            Total                                                   Total     Total
Occupational Category                      African   Coloured     Indian       White                African     Coloured   Indian       White
Clerk                                           99           18        10            58       185        91            6            9       23         129      314
Craft or related trade worker                   33                                             33       145           10            5      104         264      297
Elementary occupational worker                 136                                   12       148       400            8            5       51         464      612
Legislator, senior official or manager         173            9        31            30       243       381           10        42         169         602      845
Plant or machine operator or assembler          31                                             31       211            2                    48         261      292
Professional                                   237           17        50            74       378       199            6        27          62         294      672
Service or sales worker                        121            5                        2      128       334            2                        8      244      472
Technical or associate professional            221           12        16            71       320       289           32        33         203         357      877
(other)                                         53           13            7         11        84        1-7           3                    17         127      211
Grand Total                                   1104           74       114         258        1550      2157           79       121         685        3042     4592


Rand Water Sustainability Report 2009–2010                                      44
Target Audience                                                   to assist and enable managers in the Operations and
•   Operators and Artisans                                        other technical areas to increase their intake of people
•   Protective Services Personnel                                 with disabilities upon completion of the programme with
•   Supervisors                                                   the intention of re-absorbing them into targeted positions.
•   Managers                                                      The duration of the programme was for 12 months
                                                                  and the envisaged completion date is April 2011. The
SETA Funded Learning Projects                                     table below indicates the current status on the Technical
                                                                  Disability Learnership for the period under review.
Rand Water created a culture of continuous personal
development among employees with potential.
Capacity- Building processes equipped individuals
                                                                  •    Management Advancement Programme (MAP)
                                                                  The Management Advancement Programme is a part-time
with the understanding, skills, access to information,
                                                                  course designed to assist managers whose experience
knowledge and training to enable them to perform
                                                                  and prime activities have been in a functional area. The
effectively. Learning projects were aligned to institutional
                                                                  objective was to give managers broad exposure to the
and legal framework development making legal and
                                                                  fundamental nature and process of management and
regulatory changes to enable organisations and agencies
                                                                  human behaviour within organisations. A total of 27
at all levels in the sector, to enhance their capacities.
                                                                  managers graduated successfully of which 26 were from
Rand Water fully complied, and is aligned with the
                                                                  previously disadvantaged groups and 17 of them were
Energy Sector Education and Training Authority (ESETA)
                                                                  women.
requirements, which enabled delivery of the National
Skills Development Strategy through the following
initiatives:
                                                                  •    Performance Management System (PMS)
                                                                  The PMS is an educational and change management
                                                                  process that enables the alignment of strategic objectives
•   ABET
                                                                  to the organisation, teams and individuals as a response
Rand Water embarked on providing learning
                                                                  to enhancing organisational performance. It is aimed
opportunities to internal employees and external
                                                                  at measuring performance at different levels to ensure
community through Sector Education and Training
                                                                  consistency in approach. The target audience was
Authority (SETA) funded programmes in order to support
                                                                  managers in the M – Q bands. A total of 590 managers
the National Skills Development Strategy. Rand Water
                                                                  were trained on the modules focusing on planning,
has up-skilled and re-skilled on numeracy and literacy
                                                                  contracting, reviewing and rewarding performance. The
skills to enable effective communication in the workplace.
                                                                  training programme was a success as it was consistently
                                                                  evaluated and has received an average rating of 8 (on a
•   Learnerships
                                                                  rating scale of 1-10).
During the year under review, Rand Water embarked
on the Technical Disability Learnership programme in
                                                                  Social Economic Performance
the Electrical field at NQF Level 2 and targeted 50
candidates (25 external community members and 25                  Transformation Milestones for Rand Water
internal employees). The purpose of this programme was            Rand Water views Employment Equity as a strategic


Table 15: Techincal Disability Learnership May/June 2010.


                     Female                        Female Total    Male                                         Male Total      Grand Total
    Disability       African        Coloured                      African        Coloured         White
Mental                  5               3                8            10            1               2              13               21
Physical                                                              3                                             3               3
Grand Total             5               3                8            13            1               2              16               24




                                                                      45                    Rand Water Sustainability Report 2009–2010
Strategic Human Capital (continued)


            priority, and is committed to ensuring implementation          To ensure that employee’s value diversity in Rand Water a
            of the Employment Equity Act (‘the Act’). Rand Water           Diversity Management pilot programme was introduced
            has ensured that Employment Equity is aligned to the           to test what diversity issues people were facing. A “train
            organisation’s strategic objectives and is integrally          the trainer” programme was implemented as part of the
            linked to the Talent Management and Capacity Building          phase 2 of Diversity Management.
            strategy.
                                                                           In order to ensure that maximum participation is derived
            Rand Water’s Employment Equity Strategy is designed in         from all Rand Water Employees, a consultation strategy
            consultation with all relevant stakeholders, including the     has been developed as well as a Transformation Forum
            representative trade unions. Although it is anticipated that   document. This strategy ensures that all representatives
            our Employment Equity Strategy will place emphasis on          within the Employment Equity Forum are visible and are
            advancing designated group employees, Rand Water               known to all employees within the organisation.
            will strive to ensure that other deserving employees are
            not unfairly denied access to growth and advancement           Composition (%) of Blacks & Women Compared to
            opportunities on a progressive and structured career           the Gauteng Average
            path. The approach to Employment Equity is governed
                                                                           According to Statistics South Africa, the percentage of
            by principles of equity, affirmative action and equal
                                                                           Blacks (ACI) in Gauteng is 74 percent. All males (ACI
            opportunity and fairness.
                                                                           and white) comprise of 51 percent and all females (ACI
                                                                           and white) comprise of 49 percent of the population.
            Designated group status have been used as a tie-breaker
                                                                           Rand Water has always set its targets in line with
            in recruitment process, to ensure that where two suitably
                                                                           Gauteng Demographics, which is its largest area of
            qualified job candidates are available, Rand Water
                                                                           supply. With its new growth strategy, the organisation
            may prefer to appoint the employee from a designated
                                                                           is compelled to relook at this, and use the national
            group, if that group is under-represented in that position
                                                                           demographic as its benchmark. Table 18 below
            or occupational level.
                                                                           benchmarks the Organisation against the demographics
                                                                           of Gauteng.
            Thus far, Rand Water has been successful in ensuring
            that, in general, it strives to achieve the Employment
                                                                           Table 16: Composition of Blacks and Women in Rand
            Equity targets as outlined in the Employment Equity
                                                                           Water at M-Q Management (June 2010)
            Plan. Whilst there are some challenges in achieving
            these targets in areas like Engineering and Scientific
                                                                                            Hay         Total
            Services, efforts have been made by way of introducing              Level                               ACI      Females
                                                                                            Band        Staff
            Learnerships (such as the Technical Disability Learnership).    Executive
                                                                                              Q          8           8            4
                                                                            Management
                                                                            Senior
            Strides have been made in the employment of female                                P          47         34            13
                                                                            Management
            employees, in areas that were previously male                   Middle
                                                                                              O         147        100            43
                                                                            Management
            dominated. The organisation has also managed to report
                                                                            Junior
            successfully to the Department of Labour.                       Management
                                                                                              N         211        156            86

                                                                            Supervisory       M         345        250          144




Rand Water Sustainability Report 2009–2010                           46
Table 17: Staff Complement by Race and Gender at M-Q Management Bands.


            Job Level                        African                          Coloured                     Indian                    White        Total
                                       M                F                M               F            M             F            M           F
Executive Management (PIC)             4                3                0               1             0            0            0           0     8
Senior Management                     12                7                1               2             8            2           11           1     44
Middle Management                     52               24                3               2            13            6           36           11   147
Junior Management                     74               57                6               1             8            10          37           18   211
Supervisory                           117              94                12              8            10            9           62           33   345
TOTAL                                                                                                                                             755



Table 18:                                                                         Bursaries

                                                                                  Rand Water is committed to the advancement of
      Males             Rand Water           %              Gauteng
                                                                                  individuals, whether they are within the organisation or
 African                  1743               58.00%          73.80%
                                                                                  they reside within the community. To this end, bursaries
 Coloured                  47                 1.56%               3.8%
 Indian                    51                 1.69%               2.5%
                                                                                  are provided to promising students who wish to pursue

 White                     308               10.24%          19.90%               studies that are relevant to Rand Water’s operational
 TOTAL                    2149                                                    requirements. In the year under review, Rand Water
                                                                                  provided 251 bursaries:
     Females            Rand Water                %          Gauteng
 African                   651               21.66%               36%             •      84 for tertiary studies to children of staff. The
 Coloured                  34                 1.13%            1.98%                     availability of these bursaries was viewed as a
 Indian                    40                 1.33%            1.24%                     benefit of employment of the parent.
 White                     131                4.35%          10.24%
 TOTAL                     856
                                                                                  •      14 Open Bursaries to external students

Composition of People with Disabilities
                                                                                  •      153 Staff Study Assistance (Study Grant)
Rand Water has made steady progress in improving
its employment of People with Disabilities (PWDs).                                Recruitment
The figures below reflect a decrease from 114 to 111
                                                                                  Rand Water made 307 new appointments and
PWDs) of the total number staff employed. However
                                                                                  remains committed to appointing employees in line with
this will increase as Rand Water is currently running
                                                                                  Employment Equity (EE) targets by implementing a more
a Technical Disability Learnership for people with
                                                                                  rigorous process that includes targeting EE candidates for
disabilities, which may result in permanent appointment
                                                                                  various positions both in the core and support functions
of some of these learners, as they will be qualified in our
                                                                                  of the business. The strategic decision to ensure that the
technical operational areas.
                                                                                  organisation met the Employment Equity targets was to
                                                                                  encourage diversity in the workplace. During the period
Table 19:
                                                                                  under review the following categories were appointed in
                                                                                  the organisation:
      Categories                                       June 2010
                                  Actual                    111
                                                                                  •      85% Africans
          All PWD
                                Percentage              3.69%                     •      4% Indians
                                                                                  •      3% Coloureds




                                                                                    47                          Rand Water Sustainability Report 2009–2010
Strategic Human Capital (continued)


            Employee Relations                                              Ziyagezana Excellence Awards

            The Labour Relations climate remained stable with no            Rand Water celebrated its seventh employee awards
            significant threat of turbulence during the year under          event in November 2009. The awards programme
            review. Rand Water’s workforce is highly unionised. In          endeavours to engender a feeling of appreciation
            2008/9, 86.5-percent of the organisation’s employees            and recognition to employees for their exceptional
            belonged to a trade union. There was a slight increase          contributions to their areas of work and the organisation.
            in the level of unionisation during the year under review
            to 87.6 percent of employees. Rand Water has two                Prevalence of HIV/AIDS
            recognised trade unions, namely the South African
                                                                            South Africa has the highest prevalence of HIV/ AIDS
            Municipal Workers Union (SAMWU) and the United
                                                                            throughout the world with almost 6 million people living
            Association of South Africa (UASA).
                                                                            with HIV and a low percentage of citizens who know
                                                                            their status. Rand Water as a company forms part of this
            Participation, Co-operation and Partnership
                                                                            society and it is obviously impacted by this pandemic.
            Since its inception in 1995, Rand Water’s Participation,        As such, Rand Water established a comprehensive
            Co-operation and Partnership (PCP) structures and               programme in 2001 in order to address this issue.
            processes have continued to foster a culture of trust,          Over the years, a number of interventions have been
            creative solution-thinking and transparency, underpinned        implemented under the programme and some of these
            by the organisational values of Caring, Equity,                 interventions are highlighted below:
            Excellence, Integrity and Spirit of Partnership.
                                                                            •   Knowledge Attitude & Practices (KAP) Surveys: to
            Rand Water recognises that these are important elements             determine the level of knowledge of HIV       amongst
            needed to yield an effective collective relationship between        employees, their attitudes and practices as pertaining
            Management and the recognised trade unions towards                  to this.
            consensus-seeking on policy matters that affect employees.
                                                                            •   Annual Voluntary Counselling and Testing (VCT):
            During the year under review, policies that have                    to determine the impact on the business and for
            been jointly re-developed and endorsed through the                  employees to know their status.
            participative structures include the Code of Ethics, Fraud
            and Investigation policies and the Constitution of the          •   Actuarial Analysis Study: conducted by Metropolitan
            Stakeholders’ Forum.                                                Life Company in 2005, with the objective of:


            The constitution of the Stakeholders’ Forum defines the         •   Determining HIV/AIDS prevalence among Rand
            PCP intent and system and has been revised to include               Water employees.
            the list of matters for consultation and information-sharing,
            to ensure common understanding and an efficient and             •   Projecting the current prevalence and its potential
            stream-lined process.                                               impact on employee benefits such as Medical aid,
                                                                                pensions, leave, recruitment, etc.
            During March 2010, trade union members and Rand
            Water’s Employee Relations management visited various           •   Evaluating the impact of the VCT programme in
            large organised companies in Germany to benchmark                   alleviating the problem and initiating behaviour
            against their employee relations model. It is evident that          change.
            the German economy is further enriched by its adoption
            of a participative, co-operative and non-adversarial            •   Determining whether the interventions were sufficient
            labour relations system. The knowledge learnt will                  or needed review as well as to assist Rand Water
            enhance Rand Water’s participative structures.                      plan better for the future.

Rand Water Sustainability Report 2009–2010                           48
Current HIV Prevalence in Rand Water

Table 20: Based on the 2009 VCT results


                         HIV Prevalence in Rand Water                                                                            Positive
 Sites                                       Male                 Female           Total            Male              Female               % Male         % Female
                                                                                                                                           Positive        Positive
 Vereeniging                                     97                51              148                4                   2                 4.12%              3.92%
 Central Depot                               118                   40              158               10                   2                 8.47%              5.00%
 Zuikerbosch                                 136                   31              167               13                   0                 9.56%              0.00%
 Zwartkopjes                                     71                25              96                 5                   5                 7.04%          20.00%
 Nursery                                         92                 9              101               17                   0               18.48%               0.00%
 Rietvlei                                        72                68              140                6                   1                 8.33%              1.47%
 Vereeniging (AS)                                81                43              124                1                   3                 1.23%              6.98%
 Totals                                          667               267             934               56                  13                 8.40%              4.87%
 % Males Positive of Male Tested                 8%
 % Females Positive of                                             5%
 Female Tested
 Aggregate employees who                               7.39%
 tested positive


 Comparisons per gender on HIV prevalence
                                                                                                                    20.00%
20.00%
                                                 18.48%
18.00%
16.00%
14.00%
12.00%
10.00%                           9.56%
                         8.47%                            8.33%            8.40%

  8.00%                                  7.04%                                                                                                 6.98%

  6.00%                                                                                             5.00%                                              4.87%
                 4.12%
                                                                                            3.92%
  4.00%
  2.00%                                                           1.23%                                                                1.47%
                                                                                                            0.00%              0.00%
  0.00%
                                   % Male Positive                                                           % Female Positive
                                                                                   Gender

      VEREENIGING        CENTRAL DEPOT             ZUIKERBOSCH               ZWARTKOPJES        NURSERY             RIETVLEI           VEREENIGING (AS)         TOTALS




Actuarial Analysis Study

The study that was undertaken provided the Organisation                               From the demographic actuarial assessment of the impact
with an insight on the potential impact that the prevalence                           of HIV/AIDS, it was concluded that the HIV prevalence
of HIV/ AIDS could have on the entity, not only from the                              rate amongst Rand Water employees was estimated
impact that could arise from the loss of scarce resources                             to be 13.4% in 2005 based on the death claims data
in the form of skilled labour but also the added cost of                              gathered from the various Rand Water Group Life
conducting business arising from increased medical and                                Assurance schemes as well as the VCT statistics from the
administration expenses.                                                              2001 to 2004 VCT campaigns.



                                                                                           49                              Rand Water Sustainability Report 2009–2010
Strategic Human Capital (continued)

                                                                                 The Wellness Approach: Level 2 – Individual Focus
              In summary, it can be said that Rand Water had already
              made substantial net savings as a result of introducing
              an HIV/AIDS treatment programme. Savings at the time
              were estimated at R28.7 million for 2005 with a further                                  Transformation and Change
                                                                                                                Journey
              R4.3 million that could be obtained if more employees
              joined the programme. Rand Water could save up to
              R31.2 million in total, after allowing for ART, if the uptake                                             Employee           External
                                                                                                       Health
                                                                                      Enabling                           Wellness          Sociao-
                                                                                                     Management
              rate on its disease management programmes increases.                   Environment
                                                                                                       System
                                                                                                                       Programmes          Political
                                                                                                                       and Service          issues
              The annual saving as a result of treatment will, however,
              gradually decrease to around R19.3 million (net of the
              cost of ART) by 2015 due to increasing AIDS morbidity.
                                                                                       Culture, Leadership, Physical Environment, Employee Benefits



              Employee Wellness Programme
              The Rand Water HIV Strategy is aligned to the broader              •		Priority Area 3: Research, monitoring and
              integrated Wellness Model which is the foundation of                    surveillance. This will be achieved through the
              all wellness programmes and interventions implemented                   development and implementation of a monitoring
              within the organisation. This strategy is also aligned                  and evaluation framework for process and outcome
              to the National Strategic Plan (NSP) 2007 – 2011                        indicators
              on HIV/AIDS pertaining to all the priority areas on
              intervention, namely:-                                             •    Priority Area 4: Human rights, access to justice and
                                                                                      law reform. Ensuring knowledge of and adherence to
              •   Priority Area 1: Prevention: 50% reduction in HIV                   the legal and policy environment.
                  incidence rate by 2011
                                                                                 The slogan of our strategy reads
              •		Priority Area 2: Treatment, care and support. The               “TRIPLE ZERO – LET’S DO IT”:
                  target is to provide an appropriate package of                 •    Zero new infections
                  treatment, care and support services to 80% of HIV             •    Zero Aids deaths
                  positive adults and children as well as their families         •    Zero mother to child transmission of the virus
                  by 2011 in order to reduce morbidity and mortality
                  as well as other impacts of HIV and AIDS.


Employee Wellness Management System


                                           Work life balance, Job satisfaction, Flexible working conditions, Managing employee leave,
Enabling Environment
                                           RW Policies, Sabbaticals, Creches, Burnout, Performance Excellence, Employee benefits

                                           Risk assessment, HMS model, Health care plan, Assessment and reporting, Cost benefit
Health Management System
                                           advantage, Clinics, Primary health care, In-house referrals, Preventative care, Case
                                           management, Disease management, Information system

Employee Wellness Programmes               Absenteeism management, Increased morale, Supervisor support, Incident services, Toll-
and Services                               free services, In-house professional as organisational advisors, ROI, Visibility, Accessibility,
                                           Tools and technologies, Budget, External supplier management solution


External Socio-Political Climate           Economic factors beyond RW control but has direct impact to employee


Rand Water Sustainability Report 2009–2010                             50
Our HIV/AIDS campaigns are run under the “It’s My              National (HCT) HIV Counselling & Testing
Lifestyle” slogan which puts emphasis on individual
                                                               On 25 April 2010 the Minister of Health launched the
employees taking responsibility for their health and
                                                               National HCT Campaign that will run until June 2011
behaviour and making wise life style choices.
                                                               and it aims to mobilize 15 million South Africans to know
                                                               their status.
This strategy tackles HIV/AIDS as only one of a number
of other life threatening diseases resulting from life style
                                                               Rand Water is currently embarking on VCT in support
choices and does not single out those infected with HIV/
                                                               of the Government’s National HCT Campaign as well
AIDS, thereby de-stigmatising the disease. It is for this
                                                               as an integral and complementary element of their
reason that VCT (Voluntary Counselling and Testing) is
                                                               comprehensive wellness and HIV and AIDS management
done along with other wellness screening tests.
                                                               programmes/systems.

Mitigating Programmes
                                                               Objectives
Interventions:
                                                               The objectives of the VCT campaign are to:
•   Annual VCT
                                                               •   Mobilise all employees to know their status.

•   Industrial theatres
                                                               •   Support people with key prevention messaging in
                                                                   order to take proactive steps to a healthy lifestyle,
•   Poster campaigns, brochures, fliers (knowledge
                                                                   irrespective of HIV status.
    packs)

                                                               •   Reduce the number of new HIV infections by 50%
•   Information sessions

                                                               •   Reduce the impact of HIV and AIDS on individuals,
•   Training of Wellness Champs
                                                                   families, communities and society by expanding
                                                                   access to appropriate treatment, care and support.
•   Lifestyle management

                                                               In order to encourage participation by all, Rand Water’s
•   Addressing risky behaviour talks, e.g. “It’s My
                                                               leadership will be at the forefront of the campaign with
    Lifestyle” campaign
                                                               photographs taken and placed in strategic areas as
                                                               a showing of the stand that is being taken in the fight
•   Information resource list for employees
                                                               against HIV and AIDS.

•   Educating employees on lifestyle choices
                                                               Targeted Audience

•   Wellness programme as part of the induction                All Rand Water employees (and contractors) are the
    programme                                                  primary beneficiaries of this campaign and secondary
                                                               beneficiaries are families that live at Rand Water
•   Inclusion of all contract workers on VCT programmes        premises.


•   Partnership with occupational health & primary health      Communication Tools
    creating a seamless process in service delivery to
    employees
                                                               •   Fact sheets – easy to read fact sheets with essential
                                                                   information on the benefits of testing, finding out
                                                                   your risk of contracting HIV/AIDS and the action
                                                                   necessary to reduce the risk.



                                                                 51                       Rand Water Sustainability Report 2009–2010
Strategic Human Capital (continued)


            •   Encourage employees to wear red ribbons and HIV/         Going Forward
                AIDS T-Shirts on days testing is conducted at their
                respective sites to increase awareness.
                                                                         •   A revised disease management plan which is
                                                                             inclusive of all employees irrespective of CD4 count

            •   Pamphlets and posters on tips for healthy living;
                resources for getting information, treatment options
                                                                         •   Access of more medical aid members to quality care
                                                                             and support including access to disease management
                and steps in developing a health plan.
                                                                             at an early stage.

            •   Campaign related by-line in all corporate news
                messages for the duration of the campaign.
                                                                         •   Develop and run a lifelong treatment literacy
                                                                             programme.

            •   A list of questions to ask our doctor and a quiz to
                establish your HIV/AIDS risk.
                                                                         •   2 minute message on HIV/AIDS for use during green
                                                                             areas and departmental meetings.

            •   Monthly articles in the Weekly News with site
                updates and pictures of employees getting tested.
                                                                         •   Payslips messaging.


                                                                         •   Partner with Water Wise on school holiday
            •   Weekly updates of numbers of testing on plasma
                                                                             programme to access children for training on life style
                screens.
                                                                             choice.

            •   A poster of the Chief Executive Officer and Portfolio
                Integrating Committee participating in the VCT
                                                                         •   Educating employees on how to talk to their children
                                                                             about HIV, sex, drugs and rape.

            •   Intranet input on Rand Water in support of
                Government’s campaign.
                                                                         •   Wellness management as business case needs to
                                                                             be built into the leadership training programmes
                                                                             designed for Rand Water
            Timeline

            The VCT Campaign will commence from October until
            April 2011.




Rand Water Sustainability Report 2009–2010                          52
Corporate Social Responsibility
In recognition of the impact that it has on the wider       •    Basic Sanitation (Construction of Sanitation facilities
community, Rand Water established as a separate                  with emphasis on Urine Diversion System (UDS) &
division in the organisation a Corporate Social                  Ventilated Improved Pit (VIP’s) toilets structures
Responsibility (CSR) Division whose vision and strategy
is “To position Rand Water as a socially responsible        •    Water Conservation & Environmental Management
citizen through the implementation of Corporate Social           (Invasive Plant Removal, Leaks Repairs and Donga
Investment (CSI) programmes that have a high socio-              Rehabilitation);
economic impact”
                                                            •    Servitude & Encroachment Management;
The CSR objectives that the Organisation espouses are
as follows:                                                 •    Water Sector Support and Capacity Building


•   To ensure financial viability and excellence in cost    •    HIV/AIDS
    management;
                                                            •    Educational support for children with special needs
•   To improve customer and stakeholder satisfaction;
                                                            •    Women and Youth Empowerment
•   To ensure integrated delivery and compliance to
    internal requirements;                                  •    People with disabilities


•   To build a high performance culture through effective   •    Health
    talent management;
                                                            •    Care for the elderly
•   To implement Corporate Social Responsibility
    programmes that have a high socio-economic impact       •    Safety and Security


The CSR Mandate is therefore carried out by                 CSI Committee
undertaking programmes that address the following
                                                            A CSI Committee was established that oversees all
areas:
                                                            the CSI activities of the Organisation. The Committee
•   Partnership
                                                            is made up of members of staff from across the
•   Stakeholder Relationship
                                                            Organisation whose roles are aligned to undertaken by
•   Capacity Building
                                                            the division. The activities undertaken include but are not
•   Contract Management
                                                            limited to the following:
•   Project Management
                                                            •    Review proposals for various forms of assistance
•   Implementation
                                                                 received from deserving organisations;
•   Community Development
                                                            •    Approve and decline proposal where necessary
•   Education
                                                            •    Conduct project’s site visits;
•   Customer Management
                                                            •    Management of CSI unit performance;

Key Focus Areas
                                                            •    Monitor and Evaluate performance of programmes
                                                                 funded by the unit
Programmes will be implemented for water and
non-water related programmes and will focus on the          Project Advisory Committees
following areas:
                                                            The Municipal Service Act of 2000, states that where
•   Water Infrastructure (Construction of Pipelines &
                                                            projects are implemented at Community level, the
    Reservoirs)


                                                                53                      Rand Water Sustainability Report 2009–2010
Corporate Social Responsibility (continued)


            implementing organisation must ensure that there is         Programme beneficiaries
            full community participation. All projects where Labour
                                                                        The beneficiaries of these programmes and initiatives
            Intensive methods are applied fully comply with this
                                                                        can be classified as follows:
            requirement.


            Projects have Project Advisory Committees (PAC) in
                                                                        •   Unemployed communities (male, female, youth and
                                                                            disabled);
            place, a generic terms of reference is the guiding
            document for this structure. Monthly progress meetings
            are held at PAC level where project progress is
                                                                        •   Communities with a high level of illiteracy;

            discussed. The PAC also assists with performance
            monitoring, appointment of local service providers, staff
                                                                        •   Poor, underserviced communities;

            recruitment etc. This ensures transparency and community
            buy-in and support. Regular Project site visits are
                                                                        •   Vulnerable groups including, the aged, people with
                                                                            disabilities, children particularly, orphans;
            undertaken to ensure that agreed targets are achieved
            and increase management visibility.
                                                                        •   Women Empowerment Organisations

            Programme Performance
                                                                        Key Challenges
            The programmes that the Organisation undertakes
                                                                        The areas that are targeted for benefiting from the
            are aimed at contributing positively to the overall
                                                                        programmes are generally populated by communities
            development of South Africa. In addition to this overall
                                                                        that are economically and socially deprived. Lack of
            objective, the programmes’ other objectives include:
                                                                        access to basic services and resources make project
                                                                        implementation in these communities challenging. Some
            •   Contribute to Government achieving Millennium
                                                                        of the challenges that the Organisation faces include:
                Development Goals (MDG) by 2014;

                                                                        •   Sustainable and increased funding to reach more
            •   Making the Rand Water infrastructure accessible for
                                                                            communities;
                routine maintenance and also reducing risk of Rand
                Water facing lawsuits;
                                                                        •   Lack of local skills;

            •   Fostering ecological restoration and water
                conservation, through clearing of Alien Plants in the
                                                                        •   Sustainability of Projects;

                Rand Water Catchment Area;
                                                                        •   HIV/AIDS and its impact on the labour employed on
                                                                            the projects;
            •   Contributing to the reduction of unemployment;

                                                                        •   CSR initiatives not adequately profiled in relevant
            •   Assisting Government departments to fast track
                                                                            publications;
                service delivery;

                                                                        •   Increasing pressure to fast track service delivery




Rand Water Sustainability Report 2009–2010                         54
Table 21: Projects’ Performance Indicators

  Perspective        Strategic Objectives         Strategic activities/focus                  Projects               Key Performance Indicators Achieved
 Environmental   To promote and implement        • To conserve water                 • Alien plant removal        • Created 149 Job 90 (60%) being
 Social and      CSI initiative to ensure          through:                          • Leaks Repair                 female
 Economic        enhancement of water            • eradication of alien              • Community Education        • Cleared 931 hectares;
                 security and conservation         vegetation in the                                              • Provided accredited & informal training
                                                   catchment areas                                                  to workers
                                                 • retrofitting and repairing                                     • Retrofitted 505 houses;
                                                   of household leaking                                           • Exposed 3006 communities to water
                                                   taps and pipes                                                   purification process
                                                 • Community water wise                                           • Total budget R 5.5m
                                                   awareness creation


 Environmental   To promote and implement        Contribute towards                  • Basic Household            • Created 130 jobs 58 (48%) being
 Social and      CSI initiative that have high   Millennium Development                sanitation                   female
 Economic        socio-economic impact           Goals so of poverty                 • Alien plant removal        • Created Health & Hygiene awareness
                                                 reduction by maximizing             • Water for growth             to 2231 households
                                                 social benefits through:            • Food gardens               • Provided accredited & informal training
                                                 • improved water supply               programme                    to workers (e.g. Project & Administration
                                                    and sanitation facilities        • Encroachment                 Management)
                                                 • job opportunities                                              • Total budget R17.5m
                                                 • skills development
                                                 • women empowerment


 Environmental   Proactive and reactive          • Installation of beacon            • Encroachment               • Created 460 jobs 278 (59%) being
 Social and      management of Rand                to mark Rand Water                                               female
 Stakeholder     Water                             servitude and pipeline                                         • Installed 438 beacons;
                                                   to mitigate risks to                                           • Build 292 sign walls
                                                   pipeline damages                                               • Provide informal training to builders
                                                   as well as financial
                                                   implication in cases of
                                                   encroachers death/
                                                   property damages loss
                                                   of life resulting from
                                                   burst pipe

 Financial       Contribute towards Rand         • Increase Rand Water               • All Cost recovery          • Total budget allocation to all social,
                 Water revenue stream              spending on CSI                     projects                     environmental programmes for 2009-10
                 and prudent financial             through sourcing of                                              fiscal R 28.0m
                 sustainability by generating      external funding and
                 income from CSI                   implementation of
                                                   community projects on
                                                   cost recovery basis

 Social          To promote sustainable          • Provide assistance in the         • CSI (non water) projects Various interventions in line with the focus
                 stakeholder management            form of funding to needy                                     areas to the value of R2.6m allocated as
                 through partnerships,             organisations and non-                                       follows:
                 collaborative initiative and      profit organisation in the                                   • HIV/AIDS = R550,000
                 corporate giving                  Rand Water areas of                                          • Special schools support = R331,000
                                                   supply on various social                                     • Women Empowerment = R361,000
                                                   programs including                                           • People with Disabilities = R278,000
                                                   HIV/AIDS, home based                                         • Health = R206,000
                                                   care, youth and women                                        • Youth Empowerment = R416,000
                                                   empowerment                                                  • Care for the elderly=R277,000
                                                                                                                • Safety & Security = R277,000




                                                                                55                         Rand Water Sustainability Report 2009–2010
Corporate Social Responsibility (continued)


            By generally adopting labour intensive implementation            The CSR division will continue to undertake projects
            methods, CSR division ensures that almost all the projects       that are focused on the removal of alien vegetation and
            contribute to both the social and economic development           where possible, external funding for the projects will also
            of the targeted communities.                                     be sourced. The following projects have been identified
                                                                             and are planned for the next three financial years:
            Targets set for each project aim to address issues
            such as:                                                         Table 23:
            •      Gender equity
            •      Youth and Female empowerment                                          Projects            2010      2011      2012
                                                                                                            – 2011    – 2012    – 2013
            •      Local Supplier development
                                                                                                            Budget    Budget    Budget
            •      Local capacity building
                                                                              Elandsfontein Alien Plants
            •      Development of people with disabilities                    Removal
                                                                                                              Yes       Yes         Yes

            •      Community participation                                    Mogale City Alien Plants
                                                                                                              Yes       Yes         Yes
            •      Local Social Economic Development                          Removal
                                                                              Winterveld Sanitation
                                                                                                              Yes       Yes         Yes
                                                                              Ward 24
            Stakeholder Relationship Management
                                                                              Winterveld Sanitation
                                                                                                              Yes       Yes         Yes
            The Organisation also works hand-in-hand with other               Ward 9

            stakeholders who make significant contributions to the            Water Sector Monitoring         Yes       No         No
                                                                              Water for Growth &
            activities that are undertaken. In the 2009-10 financial                                          Yes       No         No
                                                                              Development
            year, the following projects were undertaken that were
                                                                              Water services Regulation       Yes       No         No
            funded by such stakeholders:
                                                                              Encroachment (Servitude
                                                                                                              Yes       Yes         Yes
                                                                              Management)
            Table 22:                                                         Kestel Alien Plants Removal     Yes       Yes         Yes
                                                                              Hammanskraal Sanitation         No        Yes         Yes
                          Project                       Funder                Tshwane Leaks Phase 4           No        Yes         Yes

              1.    Elandsfontein Alien      Gauteng Department               Non-Water CSI: HIV/AIDS         Yes       Yes         Yes
                    Plants Removal           of Agriculture and Rural         Women & Youth
                                                                                                              Yes       Yes         Yes
                                             Development                      Empowerment
              2.    Mogale City Alien        Gauteng Department               People with disabilities        Yes       Yes         Yes
                    Plants Removal           of Agriculture and Rural         Children & the Elderly          Yes       Yes         Yes
                                             Development
                                                                              Safety & Security               Yes       Yes         Yes
              3.    Winterveldt Sanitation   City of Tshwane
                    – ward 24
              4.    Water Sector             Department of Water Affairs
                    Monitoring               and Environment
              5.    Strategic financial      Department of Water Affairs
                    Support                  and Environment
              6.    Water for Growth &       Department of Water Affairs
                    development              and Environment
              7.    Water services           Department of Water Affairs
                    regulation               and Environment
              8.    Encroachment             Rand Water

              9.    Kestell Alien Plant      Rand Water
                    Removal
              10. Winterveldt Sanitation –   Rand Water
                  Ward 9




Rand Water Sustainability Report 2009–2010                              56
Rand Water’s Contribution to Broad-Based Black
Economic Empowerment (B-BBEE)
South Africa’s Policy of Black Economic Empowerment            construction and engineering sectors. In 2009/2010
(BEE) is not simply a moral initiative to redress the wrongs   out of Rand Water’s top 100 contractors and suppliers,
of the past. It is a pragmatic attempt to ensure that the      85 contractors and suppliers were black economic
proceeds from the Economic Growth are equitably                empowered companies.
redistributed.
                                                               Enterprise Development
Our country requires an economy that can meet the
                                                               The promotion of entrepreneurship and Small, Medium
needs of all our economic citizens - our people and their
                                                               and Micro Enterprises remains an important priority of
enterprises – in a sustainable manner. This will only be
                                                               Rand Water. Rand Water is committed to ensuring that
possible if our economy builds on the full potential of all
                                                               small businesses progressively increase their contribution
persons and communities across the length and breadth
                                                               to growth and performance of the South African
of this country.
                                                               economy in critical areas such as job creation, equity
                                                               and access to markets.
Rand Water realises that it has a far greater responsibility
than just pursuing the BEE obligations. What is required
                                                               It is the responsibility of Rand Water to make sure
to succeed is a true understanding of the BEE objectives –
                                                               that access for all new entrants in the SMME sector is
its significance for the country’s future economic success,
                                                               facilitated through the provision of adequate support in
and the challenges it poses for many sectors of society,
                                                               order to ensure that SMME’s survive the harsh introduction
especially business entrepreneurs.
                                                               to the stiff competition by big business in the mainstream
                                                               economy. The current four contractors implementing
Rand Water continues to make progress with B-BBEE
                                                               the Kestell project are cases in point. These individual
and, in the year under review, met and exceeded the
                                                               contractors were originally working on the project as site
targets set in respect of orders placed with BEE suppliers.
                                                               office staff members before being assisted to form their
                                                               own individual companies. Technical and basic business
Preferential Procurement
                                                               skills training were provided and were also assisted
To contribute to the success of BEE in South Africa,           to comply with labour and safety related acts. The
Rand Water set the target of spending 75 percent of            performance of these contractors is enhanced through
its procurement from BEE enterprises in 2009/2010              weekly site visits thus ensuring that work deficiencies are
Financial year, with a stretch to 80 percent. Rand Water       identified and addressed on time.
ensures meaningful participation of black people in all
its projects and in this regard, it exceed its targets by      The challenges Rand Water seeks to address through
achieving a BEE spent of R4 847 434 659.02 which               Enterprise Development include:
constitutes 81.12 percent.
                                                               High failure rate amongst black-owned start-ups due to
Rand Water fosters the achievement of substantial              lack of access to finance and other business support –
change in racial and gender composition through
encouraging the traditional companies to form                  The solutions to this challenge amongst others are:
joint ventures with entities that are run by previously        Investment, Loans, Grants, Guarantees, Provision of seed
disadvantaged individuals.                                     capital, Access to credit, interest free loans, less stringent
                                                               collateral requirements and other commercial/financial
Rand Water contributes to increasing the number of             conditions, time spent on training and mentoring of black
quality black firms providing services and products to the     entrepreneurs.




                                                                 57                       Rand Water Sustainability Report 2009–2010
            Job-creation cannot be attained without the growth of                  who are also supported by means of ensuring:
            the small business sector –                                            •   early payments,
                                                                                   •   supplier guidance forums and;
            Growth with respect to job creation will predominantly                 •   facilitation of cession agreements.
            come from the small business sector. This will only be
            made possible if small businesses are assisted to grow,                Through the above Enterprise Development initiatives
            develop and graduate from micro and survivalist entities               Rand Water aims to achieve the following:
            to become sustainable, job-creating enterprises. The                   •   Beneficiary enterprises should demonstrate financial
            Enterprise Development element of the scorecard seeks                      independence and stability.
            to incentivise organisations like Rand Water by providing              •   Development of Management skills (Financial,
            recognition for various types of assistance to SMME’s                      Marketing, Operations, etc.)
            with the objective of expanding their operational and                  •   Beneficiary enterprises should demonstrate
            financial capacity.                                                        profitability, well managed cash flow and long-term
                                                                                       sustainable growth.
            Rand Water‘s objectives towards Enterprise                             •   Enhanced technical skills
            Development are to:                                                    •   Enhanced competitive edge
            •   Enhance competitiveness of the BEE suppliers to                    •   Weaned from Rand Water Dependency Syndrome
                acceptable standards
                                                                                   Job creation and local empowerment – Through
            •   Increase the capacity of Rand Water’s BEE suppliers                community-based projects, Rand Water is promoting
                to meet not only Rand Water’s but other customers’                 the development in underdeveloped areas by procuring
                demands, thereby fulfilling the objective of self-                 goods and services from local businesses where projects
                sustainability                                                     are undertaken. During the year under review, in all
                                                                                   community based projects Rand Water procure materials
            •   Assist in developing capabilities of Rand Water’s                  from local small business enterprises. In the year under
                BEE/SMME suppliers to take up new challenges                       review emerging black contractors were given contracts
                brought by global competitive environment                          for the construction of sanitation facilities. A total of
                                                                                   R10 million in 2009/2010 financial year was spent
            •   Enhance the Design & Development as well as                        on these contracts. Another R10 million is committed for
                Manufacturing capabilities of BEE suppliers with the               the current financial year under review. Our job creation
                view of driving “Local Content” initiative                         efforts included: employment of local people through
                                                                                   sanitation construction projects
            •   Influence Rand Water’s 1st tier suppliers to develop
                lower tiers in line with the objectives of the B-BBEE              Contractor assistance
                Codes of Good Practice and the B-BBEE strategy.
                                                                                   At this stage Rand Water is proud to note that 100
                This in turn will achieve the objectives of Accelerated
                                                                                   contractors and suppliers now have a BEE Certificates
                and Shared Growth Initiative for South Africa
                                                                                   obtained through Rand Water funding. Our intended
                (ASGISA), which seeks to reduce unemployment and
                                                                                   assistance and empowerment outcomes and impacts
                poverty by accelerating economic growth.
                                                                                   are to enable: Generation of seed funding for small
                                                                                   business; Empowerment through upgrading of skills and
            To foster the Enterprise Development, Rand Water ensures
                                                                                   competencies to compete more equitably in the economy.
            that multiple projects are awarded to number of SMME’s
                                                                                   .

            Table 24:


                                             2003/           2004/         2005/          2006/           2007/          2008/          2009/
              Key Performance Indicator
                                             2004            2005          2006           2007            2008           2009           2010
              Jobs Created                    648            660            1079            513            809            621            808
              Female Staff Employed        259 (40%)      366 (55%)       563 (52%)     267 (52%)       459 (56%)      341 (55%)      470 (59%)


Rand Water Sustainability Report 2009–2010                           58
Maintaining Sound Financial Health
Financial Performance

The Group has produced modest results for the financial      as accumulated cash reserves have been utilised to
year ended 30 June 2010 which have been achieved             fund the capital expenditure for the period as well as to
during a high inflationary period with energy costs          redeem the a portion of the long-term loan amounting
increases of approximately 96% compared to the               to R100 million for the year, thus reducing the interest
2008 levels and higher than expected raw water costs.        bearing borrowings to R630 million.
The Group achieved revenues of R5 billion in 2010
compared to the same period last year, an increase           The group incurred capital expenditure of
of approximately 7.5% mainly driven by tariff increase       R910 million during the period under review, the
of 8.3% for the year which has been obviated by              majority of which relates to the augmentation and
a reduction in volumes consumption for the year of           rehabilitation of infrastructure which has resulted in an
1.5% which is attributable to the high rainfall patterns     increase in property, plant and equipment to R6.3 billion.
experienced compared to previous years.                      The group is undertaking major infrastructure renovations
                                                             to ageing infrastructure. The capital expenditure
Net profit has come under pressure due to the difficult      decreased by 6% compared to the previous year due
trading conditions experienced during the year               to lack of sufficient capacity, however, capital
under review. Net profit for the year decreased from         expenditure is expected to return to normal levels in the
R582 million to R302 million mainly as a result of 39%       new financial year.
increase in variable costs comprising of energy and
chemical costs, each of which increased by 39% and           The decrease in return on asset from 6% in the previous
36% respectively compared to the previous year and           year to 4% is attributable to the increased level of capital
lower than expected tariff increases awarded by the          expenditure investments embarked upon over the last two
Shareholder. The full impact of these increases was          years as well as lower operating profits generated for
alleviated by the cost saving and efficiency measures        the year.
that were put in place in order to curb further losses and
higher interest earned on investments.                       Accumulated reserves at the end of the financial year
                                                             amounted to R6.2 billion, representing a R297 million
The group remained cash positive reporting closing cash      increase from the R5.9 billion in 2009. The increase is
balance of R925 million with a cash generated from           mainly as a result of the net profit generated for the year.
operations of R535 million. Cash generation capability       The group has a healthy balance sheet with the debt to
has been affected by the tight trading conditions, a         equity ratio of 14% (2009: 16%) reflecting the available
shift in the profile of some customers, and increased tax    debt raising capacity of the organisation.
payments. The cash generated from operations as well




                                                               59                      Rand Water Sustainability Report 2009–2010
Maintaining Sound Financial Health (continued)


Abridged Consolidated Annual Financial Statements for the year ended 30 June 2010

             In millions of Rands                                                                2010                 2009
             Income Statement
             Revenue                                                                                   4 998               4 648
             Cost of sales                                                                            (2 457)             (2 259)
             Gross income                                                                               2 541               2 389
             Net operating expenses                                                                   (2 223)             (1 876)
             Operating profit                                                                             318                 513
             Net finance costs                                                                            (11)                 74
             Taxation                                                                                       (5)                (5)
             Profit for the year                                                                          302                 582
             Statement of Comprehensive Income
             Profit for the year                                                                          302                 582
             Other comprehensive income                                                                    (4)                  4
             Total comprehensive income                                                                   298                 586
             Statement of Financial Position
             Assets
             Non-current assets                                                                         6 586              5 892
             Current assets                                                                             1 875              2 028
             Non-current assets held for sale                                                                -                 1
             Total assets                                                                               8 461              7 921
             Equity and Liabilities
             Accumulated Reserves                                                                       6 222              5 925
             Non current liabilities                                                                      949                860
             Current liabilities                                                                        1 290              1 136
             Total equity and liabilities                                                               8 461              7 921
             Statement of Changes in Equity
             Balance at 1 July                                                                          5 924              5 338
             Total comprehensive income                                                                   298                586
             Balance at 30 June                                                                         6 222              5 924
             Statement of Cash Flows
             Net cash from operating activities                                                          535                  957
             Cash generated from operations                                                              546                  881
             Other                                                                                       (11)                  76

             Net cash from investing activities                                                         (862)                (955)

             Net cash from financing activities                                                         (100)                    -

             Net (decrease)/increase in cash and cash equivalents                                        (427)                   2


             Funding


             Rand Water is embarking on a Capital Expenditure/          R8.1 billion to address the core business requirements
             Investment Programme (CAPEX) amounting to R10 billion      that is made up of 70% new augmentation to increase
             to meet the demand projections for 2015, 2020 and          capacity and 30% renovations and refurbishments to
             2025, to refurbish the ageing infrastructure and to        maintain current operations. A further R1.9 billion is
             address the new focus on Bulk Sanitation for the next      included to address the Group’s growth investments
             five years. Included in the CAPEX Programme is a           which would include Bulk Sanitation, Co-Generation as


Rand Water Sustainability Report 2009–2010                         60
well as investments contributing to the National Priorities   The feasibility of Rand Water’s Funding Strategy is
being, Water Conservation, providing for areas where          dependent on its ability to meet its strategic objectives
there is a significant social responsibility / indigent       and the elements of the Corporate/Business Plan.
component and Green Agenda’s for the next five years.
                                                              The Funding Plan and Strategy encompasses the
Rand Water will fund its requirements cost-effectively        following key strategic considerations for Rand Water:
and with a combination of funding sources. Out of the         •    Credit rating analysis evaluating the impact of
R10 billion Capex requirements, R3.3 billion will be               increased gearing and other key financial covenants
funded through cash generated from operation and the          •    Balance sheet optimisation and utilisation of cash
balance will be funded through a combination of the                resources;
following Funding sources:                                    •    Maintenance of an optimum debt level;
•   Development Financial Institutions (DFI’s);               •    Optimisation of the cost of capital;
•    Bank Funding;                                            •    Adopt an efficient Asset and Liability Management
•    Debt Capital Markets, and                                     methodology;
•   Off Balance Sheet funding this includes Project           •    Compliance with legislation and Regulatory Bodies;
    Financing and Public Private Partnerships.
                                                              Credit Ratings
Project Financing and Public Private Partnerships would
be utilized to ring fence growth investments as well as       Rand Water is rated by two rating agencies namely, Fitch
a combination of Grant Funding in line with National          Ratings and Standard & Poor’s.
priorities.
                                                              Fitch Ratings has maintained its view of Rand Water
Currently Rand Water will be launching a Domestic             as follows:
Medium Term Note (DMTN) Programme. The size of the            •    Long term rating of “AA+(zaf)” with a stable outlook
programme is R5 billion. The programme will allow Rand             and
Water to build an issuer profile by issuing short term        •    Short term rating of “F1+ (zaf)”.
commercial paper and long dated instruments to match
the assets and liability profile.                             The ratings reflect a high level of implied Shareholder
                                                              support which is in line with Fitch’s assessment of the
The Funding Strategy and Plan that has been formulated        critical nature of the country’s water sector.
in line with the Group’s strategy, relevant regulation and
taking into account the economic drivers, key covenants       Standard & Poor’s ratings
and liquidity requirements in order to address the CAPEX      •    Local currency : A+ with negative outlook and
requirements has been approved by the Board. The              •    Foreign currency rating remained at “BBB+”.
plan aims to ensure that Rand Water continues to be a
sustainable bulk water services provider and maintains        Standard & Poor’s is of the view that our ratings reflects
its financial viability while addressing the funding          the company’s currently strong credit metrics and
requirements. Further to Board approval the Funding           supported by a net cash balance sheet.
Plan together with the required borrowing limits of R4
billion pertaining to the core business requirements for      Rand Water effectively quantifies, manages and monitors
the three years ending 2013 has been approved by the          the financial (liquidity risk, credit risk, investment and
Department of Water Affairs and National Treasury and         interest rate risk) and operational risk of the treasury
gazette accordingly in the Government Gazette dated 4         environment by ensuring policies and procedures related
June 2010.                                                    to these risks are adhered to.




                                                                  61                      Rand Water Sustainability Report 2009–2010
Global Reporting Initiative’s Sustainability Reporting
Guidelines and Other Statistics
This section includes all statistical and other information                                                       The detailed GRI G3 content index providing an
that pertains to the Global Reporting Initiative’s (GRI) G3                                                       indicator by indicator view of our compliance with GRI
Sustainability Reporting Guidelines. The report has been                                                          G3 is presented below:
prepared based on the guidelines at a C level.


           Report Application Level                               C                   C+                                         B                    B+                                        A                   A+
                          G3 Profile Disclosures   Report on:                                                      Report on all criteria listed                                  Same as requirement for
                                                   1.1                                                             for level C plus:                                              level B

                                                   2.1 - 2.10                                                      1.2                                                             
                                                   3.1 - 3.8, 3.10 -3.12                                           3.9, 3.13                                                       
                                                   4.1 - 4.4, 4.14 - 4.15             Report externally assured    4.5 - 4.13, 4.16 - 4.17                                         




                                                                                                                                                      Report externally assured




                                                                                                                                                                                                                    Report externally assured
                          G3 Management            Not required                                                    Management approach                                            Management approach
   Standard Disclosures




                          Approach Disclosures                                                                     disclosures for each                                           disclosures for each indicator
                                                                                                                   indicator category                                             category

                          G3 Performance           Report on a minimum of                                          Report on a minimum                                            Respond on each core
                          Indicators and           10 performance indicators,                                      of 20 performance                                              G3 and sector supplement
                          Sector Supplement        including at least one from                                     indicators, including at                                       indicator with due regard to
                          Performance Indicators   each of: social, economic                                       least one from each of:                                        the materiality principle by
                                                   and environment                                                 economic, environment,                                         either: a) reporting on the
                                                                                                                   human rights, labour,                                          indicator; or b) explaining the
                                                                                                                   society, product                                               reason for its omission.
                                                                                                                   responsibility.




Other pertinent statistics based on the GRI indicators addressed

GRI Summary Table

 Indicator                                               Disclosure                                                                                Annual Report                                  Sustainability Report
                                                                                                                             Core
                                                                                                                                                   Page Number                                       Page Number
       1.1                  Statement from the most senior decision-maker of the
                                                                                                                              Yes                                        9                                 5–6
                            organisation
       1.2                  Description of key impacts, risks, and opportunities.                                             No                                          –                                 9
       2.1                  Name of the organisation.                                                                          Yes                                        –                                 1
       2.2                  Primary brands, products, and/or services.                                                        Yes                                         –                                 1
       2.3                  Operational structure of the organisation, including main
                                                                                                                              Yes                                        7                                  –
                            divisions, operating companies, subsidiaries, and joint ventures.
       2.4                  Location of organisation’s headquarters.                                                           Yes                                        –                            Back Cover
       2.5                  Number of countries where the organisation operates, and
                            names of countries with either major operations or that are
                                                                                                                              Yes                                         –                               1, 2
                            specifically relevant to the sustainability issues covered in the
                            report.
       2.6                  Nature of ownership and legal form.                                                               Yes                                     12                                    –
       2.7                  Markets served (including geographic breakdown, sectors
                                                                                                                              Yes                                         –                               1, 27
                            served, and types of customers/beneficiaries).
       2.8                  Scale of the reporting organisation.                                                              Yes                                         –                                 26
       2.9                  Significant changes during the reporting period regarding size,
                                                                                                                              Yes                                     12                                    –
                            structure, or ownership.




Rand Water Sustainability Report 2009–2010                                                                          62
GRI Summary Table (continued)


 Indicator                                 Disclosure                                        Annual Report        Sustainability Report
                                                                                      Core
                                                                                             Page Number             Page Number
  2.10       Awards received in the reporting period.                                 Yes       60,63                    3, 18
   3.1       Reporting period (e.g., fiscal/calendar year) for information
                                                                                      Yes          –                      2, 5
             provided.
   3.2       Date of most recent previous report (if any).                            Yes          –                        5
   3.3       Reporting cycle (annual, biennial, etc.)                                 Yes          –                        5
   3.4       Contact point for questions regarding the report or its contents.        Yes                          Inside Back Cover
   3.5       Process for defining report content.                                     Yes                                5, 6, 7
   3.6       Boundary of the report (e.g., countries, divisions, subsidiaries,
                                                                                      Yes          –                        1
             leased facilities, joint ventures, suppliers).
   3.7       State any specific limitations on the scope or boundary of the
                                                                                      Yes          –                        5
             report.
   3.8       Basis for reporting on joint ventures, subsidiaries, leased
             facilities, outsourced operations, and other entities that can
                                                                                      Yes         13                        –
             significantly affect comparability from period to period and/or
             between organisations.
   3.9       Data measurement techniques and the bases of calculations,
             including assumptions and techniques underlying estimations
             applied to the compilation of the Indicators and other                   No           –                        –
             information in the report. Explain any decisions not to apply, or
             to substantially diverge from, the GRI Indicator Protocols.
  3.10       Explanation of the effect of any re-statements of information
             provided in earlier reports, and the reasons for such re-statement
                                                                                      Yes          –                      N/A
             (e.g., mergers /acquisitions, change of base years/periods,
             nature of business, measurement methods).
  3.11       Significant changes from previous reporting periods in the
             scope, boundary, or measurement methods applied in the                   Yes          –                     N/A
             report.
  3.12       Table identifying the location of the Standard Disclosures in the
                                                                                      Yes          –                       62
             report.
  3.13       Policy and current practice with regard to seeking external
                                                                                      No           –                        6
             assurance for the report.
   4.1       Governance structure of the organisation, including committees
             under the highest governance body responsible for specific               Yes       12–16                       –
             tasks, such as setting strategy or organisational oversight.
   4.2       Indicate whether the Chair of the highest governance body is
                                                                                      Yes       12–16                      –
             also an executive officer.
   4.3       For organisations that have a unitary board structure, state the
             number of members of the highest governance body that are                Yes       12–16                      –
             independent and/or non-executive members.
   4.4       Mechanisms for shareholders and employees to provide
                                                                                      Yes          –                        7
             recommendations or direction to the highest governance body.
   4.5       Linkage between compensation for members of the highest
             governance body, senior managers, and executives (including
                                                                                      No           –                       _
             departure arrangements), and the organisation’s performance
             (including social and environmental performance).
   4.6       Processes in place for the highest governance body to ensure
                                                                                      No           –                        _
             conflicts of interest are avoided.
   4.7       Process for determining the qualifications and expertise of
             the members of the highest governance body for guiding the
                                                                                      No           –                       _
             organisation’s strategy on economic, environmental, and social
             topics.




                                                                                 63          Rand Water Sustainability Report 2009–2010
GRI Summary Table (continued)


 Indicator                                Disclosure                                        Annual Report   Sustainability Report
                                                                                     Core
                                                                                            Page Number        Page Number
   4.8       Internally developed statements of mission or values, codes of
             conduct, and principles relevant to economic, environmental,            No          –                   4
             and social performance and the status of their implementation.
   4.9       Procedures of the highest governance body for overseeing the
             organisation’s identification and management of economic,
             environmental, and social performance, including relevant
                                                                                     No          –                 9–13
             risks and opportunities, and adherence or compliance with
             internationally agreed standards, codes of conduct, and
             principles.
  4.10       Processes for evaluating the highest governance body’s
             own performance, particularly with respect to economic,                 No        12–16                 –
             environmental, and social performance.
  4.11       Explanation of whether and how the precautionary approach or
                                                                                     No          –                   –
             principle is addressed by the organisation.
  4.12       Externally developed economic, environmental, and social
             charters, principles, or other initiatives to which the organisation    No          –                   9
             subscribes or endorses.
  4.13       Memberships in associations (such as industry associations)
             and/or national/international advocacy organisations in which
             the organisation: * Has positions in governance bodies; *
                                                                                     No          –                16, 19
             Participates in projects or committees; * Provides substantive
             funding beyond routine membership dues; or * Views
             membership as strategic.
  4.14       List of stakeholder groups engaged by the organisation.                 Yes         –                  7, 8
  4.15       Basis for identification and selection of stakeholders with whom
                                                                                     Yes         –                  7, 8
             to engage.
  4.16       Approaches to stakeholder engagement, including frequency of
                                                                                     No          –                  7, 8
             engagement by type and by stakeholder group.
  4.17       Key topics and concerns that have been raised through
             stakeholder engagement, and how the organisation has
                                                                                     No          –                       –
             responded to those key topics and concerns, including through
             its reporting.
   EC1       Direct economic value generated and distributed, including
             revenues, operating costs, employee compensation, donations
                                                                                                 –                 59–61
             and other community investments, retained earnings, and
             payments to capital providers and governments.
   EC2       Financial implications and other risks and opportunities for the
                                                                                                 –                   19
             organisation’s activities due to climate change.
   EC3       Coverage of the organisation’s defined benefit plan obligations.                    –                    –
   EC4       Significant financial assistance received from government.                          –                    –
   EC5       Range of ratios of standard entry level wage compared to local
                                                                                                  –                  –
             minimum wage at significant locations of operation.
   EC6       Policy, practices, and proportion of spending on locally-based
                                                                                                 –                57, 58
             suppliers at significant locations of operation.
   EC7       Procedures for local hiring and proportion of senior management
             hired from the local community at significant locations of                          –                 45, 46
             operation.
   EC8       Development and impact of infrastructure investments
             and services provided primarily for public benefit through                          –                   45
             commercial, in-kind, or pro bono engagement.
   EC9       Understanding and describing significant indirect economic
                                                                                                 –                   –
             impacts, including the extent of impacts.




Rand Water Sustainability Report 2009–2010                                      64
GRI Summary Table (continued)


 Indicator                               Disclosure                                          Annual Report        Sustainability Report
                                                                                      Core
                                                                                             Page Number             Page Number
   EN1       Materials used by weight or volume.                                                  –                     15, 16
   EN2       Percentage of materials used that are recycled input materials.                       –                        –
   EN3       Direct energy consumption by primary energy source.                                  –                         –
   EN4       Indirect energy consumption by primary source.                                       –                         –
   EN5       Energy saved due to conservation and efficiency improvements.                                                  –
   EN6       Initiatives to provide energy-efficient or renewable energy based
             products and services, and reductions in energy requirements as                      –                       38
             a result of these initiatives.
   EN7       Initiatives to reduce indirect energy consumption and reductions
                                                                                                   –                       38
             achieved.
   EN8       Total water withdrawal by source.                                                     –                     15, 16
   EN9       Water sources significantly affected by withdrawal of water.                          –                        1
  EN10       Percentage and total volume of water recycled and reused.                             –                        –
  EN11       Location and size of land owned, leased, managed in, or
             adjacent to, protected areas and areas of high biodiversity                          –                     35, 36
             value outside protected areas.
  EN12       Description of significant impacts of activities, products, and
             services on biodiversity in protected areas and areas of high                        –                     35, 36
             biodiversity value outside protected areas.
  EN13       Habitats protected or restored.                                                      –                     35, 36
  EN14       Strategies, current actions, and future plans for managing
                                                                                                  –                     35, 36
             impacts on biodiversity.
  EN15       Number of IUCN Red List species and national conservation list
             species with habitats in areas affected by operations, by level of                   –                     34, 35
             extinction risk.
  EN16       Total direct and indirect greenhouse gas emissions by weight.                         –                       –
  EN17       Other relevant indirect greenhouse gas emissions by weight.                           –                       –
  EN18       Initiatives to reduce greenhouse gas emissions and reductions
                                                                                                   –                      42
             achieved.
  EN19       Emissions of ozone-depleting substances by weight.                                    –                       –
  EN20       NOx, SOx, and other significant air emissions by type and
                                                                                                   –                       –
             weight.
  EN21       Total water discharge by quality and destination.                                     –                       –
  EN22       Total weight of waste by type and disposal method.                                    –                       –
  EN23       Total number and volume of significant spills.                                        –                       –
  EN24       Weight of transported, imported, exported, or treated waste
             deemed hazardous under the terms of the Basel Convention
                                                                                                   –                       –
             Annex I, II, III, and VIII, and percentage of transported waste
             shipped internationally.
  EN25       Identity, size, protected status, and biodiversity value of water
             bodies and related habitats significantly affected by the                             –                       –
             reporting organisation’s discharges of water and runoff.
  EN26       Initiatives to mitigate environmental impacts of products and
                                                                                                   –                    39–42
             services, and extent of impact mitigation.
  EN27       Percentage of products sold and their packaging materials that
                                                                                                   –                       –
             are reclaimed by category.
  EN28       Monetary value of significant fines and total number of non-
             monetary sanctions for non-compliance with environmental laws                        –                        –
             and regulations.




                                                                                 65          Rand Water Sustainability Report 2009–2010
GRI Summary Table (continued)


 Indicator                              Disclosure                                        Annual Report   Sustainability Report
                                                                                   Core
                                                                                          Page Number        Page Number
  EN29       Significant environmental impacts of transporting products
             and other goods and materials used for the organisation’s                         –                   –
             operations, and transporting members of the workforce.
  EN30       Total environmental protection expenditures and investments by
                                                                                               –                41, 55
             type.
   LA1       Total workforce by employment type, employment contract, and
                                                                                               –                   –
             region.
   LA2       Total number and rate of employee turnover by age group,
                                                                                               –                   –
             gender, and region.
   LA3       Benefits provided to full-time employees that are not provided to
                                                                                               –                   –
             temporary or part-time employees, by major operations.
   LA4       Percentage of employees covered by collective bargaining
                                                                                               –                  48
             agreements.
   LA5       Minimum notice period(s) regarding significant operational
             changes, including whether it is specified in collective                          –                   –
             agreements.
   LA6       Percentage of total workforce represented in formal joint
             management-worker health and safety committees that help                          –
             monitor and advise on occupational health and safety programs.
   LA7       Rates of injury, occupational diseases, lost days, and
                                                                                               –                10, 11
             absenteeism, and number of work-related fatalities by region.
   LA8       Education, training, counselling, prevention, and risk-control
             programs in place to assist workforce members, their families, or                 –                44–52
             community members regarding serious diseases.
   LA9       Health and safety topics covered in formal agreements with
                                                                                                                44–52
             trade unions.
  LA10       Average hours of training per year per employee by employee
                                                                                               –                   –
             category.
  LA11       Programs for skills management and lifelong learning that
             support the continued employability of employees and assist                       –                44, 45
             them in managing career endings.
  LA12       Percentage of employees receiving regular performance and
                                                                                               –                   –
             career development reviews.
  LA13       Composition of governance bodies and breakdown of
             employees per category according to gender, age group,                            –                46, 47
             minority group membership, and other indicators of diversity.
  LA14       Ratio of basic salary of men to women by employee category.                       –                   –
   HR1       Percentage and total number of significant investment
             agreements that include human rights clauses or that have                         –                   –
             undergone human rights screening.
   HR2       Percentage of significant suppliers and contractors that have
                                                                                               –                   –
             undergone screening on human rights and actions taken.
   HR3       Total hours of employee training on policies and procedures
             concerning aspects of human rights that are relevant to                           –                   –
             operations, including the percentage of employees trained.
   HR4       Total number of incidents of discrimination and actions taken.                    –                   –
   HR5       Operations identified in which the right to exercise freedom of
             association and collective bargaining may be at significant risk,                  –                  –
             and actions taken to support these rights.
   HR6       Operations identified as having significant risk for incidents of
             child labour, and measures taken to contribute to the elimination                  –                  –
             of child labour.



Rand Water Sustainability Report 2009–2010                                    66
GRI Summary Table (continued)


 Indicator                                Disclosure                                        Annual Report        Sustainability Report
                                                                                     Core
                                                                                            Page Number             Page Number
   HR7       Operations identified as having significant risk for incidents of
             forced or compulsory labour, and measures to contribute to the                       –                       –
             elimination of forced or compulsory labour.
   HR8       Percentage of security personnel trained in the organisation’s
             policies or procedures concerning aspects of human rights that                       –                       –
             are relevant to operations.
   HR9       Total number of incidents of violations involving rights of
                                                                                                  –                       –
             indigenous people and actions taken.
   SO1       Nature, scope, and effectiveness of any programs and
             practices that assess and manage the impacts of operations on                        –                       –
             communities, including entering, operating, and exiting.
   SO2       Percentage and total number of business units analysed for risks
                                                                                                  –                       –
             related to corruption.
   SO3       Percentage of employees trained in organisation’s anti-corruption
                                                                                                  –                       –
             policies and procedures.
   SO4       Actions taken in response to incidents of corruption.                                –                       –
   SO5       Public policy positions and participation in public policy
                                                                                                  –                       –
             development and lobbying.
   SO6       Total value of financial and in-kind contributions to political
                                                                                                 –                        –
             parties, politicians, and related institutions by country.
   SO7       Total number of legal actions for anti-competitive behaviour, anti-
                                                                                                 –                        –
             trust, and monopoly practices and their outcomes.
   SO8       Monetary value of significant fines and total number of
             non-monetary sanctions for non-compliance with laws and                             –                        –
             regulations.
   PR1       Life cycle stages in which health and safety impacts of products
             and services are assessed for improvement, and percentage
                                                                                                 –                        –
             of significant products and services categories subject to such
             procedures.
   PR2       Total number of incidents of non-compliance with regulations
             and voluntary codes concerning health and safety impacts
                                                                                                 –                        –
             of products and services during their life cycle, by type of
             outcomes.
   PR3       Type of product and service information required by procedures,
             and percentage of significant products and services subject to                       –                       –
             such information requirements.
   PR4       Total number of incidents of non-compliance with regulations and
             voluntary codes concerning product and service information and                       –                       –
             labelling, by type of outcomes.
   PR5       Practices related to customer satisfaction, including results of
                                                                                                  –                      14
             surveys measuring customer satisfaction.
   PR6       Programs for adherence to laws, standards, and voluntary codes
             related to marketing communications, including advertising,                          –                       –
             promotion, and sponsorship.
   PR7       Total number of incidents of non-compliance with regulations
             and voluntary codes concerning marketing communications,
                                                                                                  –                       –
             including advertising, promotion, and sponsorship by type of
             outcomes.
   PR8       Total number of substantiated complaints regarding breaches of
                                                                                                 –                         –
             customer privacy and losses of customer data.
   PR9       Monetary value of significant fines for non-compliance with laws
             and regulations concerning the provision and use of products                        –                         –
             and services.


                                                                                67          Rand Water Sustainability Report 2009–2010
List of Acronyms
            ABET          Adult Basic Education and Training           MW      Megawatt
            ACI           Africans, Coloureds and Indians              MWh     Megawatt Hour
            AMD           Acid Mine Drainage                           Ml/d    Megalitres per day
            ASGISA        Accelerated and Shared Growth Initiative     mm      Millimetre
                          for South Africa                             m2      Square metres
            BD            Blue Drop                                    NQF     National Qualifications Framework
            BDS           Blue Drop System                             NSP     National Strategic Plan
                          (www.dwa.gov.za/buedrop)                     ODD     Organisational Development and Design
            BEE           Black Economic Empowerment                   O&M     Operation and Maintenance
            COP16         16th session of the Conference of            PAC     Project Advisory Committees
                          the Parties on Climate Change at the         PCP     Participation, Co-operation and
                          United Nations                                       Partnership
            CP            Carthodic Protection                         PDG     Previously Disadvantaged Groups
            CRM           Customer Relationship Management                     (ACI plus White Females)
            CSIR          Centre for Science, Information and          PDI     Previously Disadvantaged Individuals
                          Industrial Research                          PFMA    Public Finance Management Act
            CSR           Corporate Social Responsibility              PIC     Portfolio Integrating Committee
            CSI           Corporate Social Investment                  PMS     Performance Management System
            CVM           Customer Value Management                    PWD     People with Disabilities
            DBSA          Development Bank of Southern Africa          RMP     Resource Management Plan
            DM            District Municipality                        RWS     Rural Water Scheme
            dTI           Department of Trade and Industry             SABS    South African Bureau of Standards
            DWAE          Department of Water Affairs and              SAMWU   South African Municipal Workers Union
                          Environment                                  SAQA    South African Qualifications Authority
            DWQ           Drinking Water Quality                       SETA    Sector Education Training Authority
            DWQM          Drinking Water Quality Management            SHEQ    Occupational Health, Safety,
            EA            Environmental Authorisations                         Environmental and Quality Management
            EE            Employment Equity                                    Systems
            EIA           Environmental Impact Assessments             SMS     Short Message Service
            ERWAT         East Rand Water Care Company                 UASA    United Association of South Africa
            ESETA         Energy Sector Education Training Authority   UDS     Urine Diversion System
            eWQMS         Electronic Water Quality Management          UK      United Kingdom
                          System                                       UNISA   University of South Africa
            GIS           Geographic Information Systems               VBCEC   Vaal Barrage Catchment Executive
            GPS           Global Positioning System                            Committee
            HACC          Hazard Analysis and Chemical Control         VCT     Voluntary Counselling and Testing
            IEMP          Industrial Effluent Monitoring Programme     VIP     Ventilated Improved Pit
            IT            Information Technology                       WHO     World Health Organisation
            KAP           Knowledge Attitude & Practices Surveys       WSA     Water Service Authority
            Kl            Kilolitres                                   WQSP    Water Quality Safety Plan
            km            Kilometre                                    WRC     Water Research Commission
            LM            Local Municipality                           WSP     Water Service Provider
            MAP           Management Advancement Programme             WTW     Water Treatment Works
            MDG           Millennium Development Goals                 WULA    Water Use Licenses




Rand Water Sustainability Report 2009–2010                       68

								
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